Complying with Enhanced Cybersecurity Safeguards in California

SHRM

Brian G. Cesaratto and Deanna L. Ballesteros, attorneys in the Employment, Labor & Workforce Management and Litigation practices, co-authored an article in SHRM, titled “Complying with Enhanced Cybersecurity Safeguards in California.”

Following is an excerpt:

The California Privacy Rights Act (CPRA) leaps forward on cybersecurity by amending the California Consumer Privacy Act (CCPA) to impose enhanced protections. The CPRA enhancements apply to "for profit" companies and other organizations: (a) with more than $25 million in gross revenues in the preceding calendar year, or (b) that annually buy, sell or share the personal information of 100,000 or more consumers or households, or (c) that derive at least 50 percent of their annual revenue from selling or sharing consumer personal information.

Those businesses must:

  • Provide reasonable cybersecurity safeguards for all categories of personal information.
  • Conduct annual cybersecurity audits and make regulatory filings of risk assessments with the newly created California Privacy Protection Agency if the processing of personal information presents a significant risk to consumers' privacy or security.
  • Require contractual clauses and other safeguards to address supply chain security and privacy risks when they transfer, share or otherwise disclose personal information to their vendors and other third parties.

This article was originally published on the firm’s Workforce Bulletin blog, “Organizations Should Plan in 2021 to Comply with the California Privacy Rights Act’s Enhanced Cybersecurity Safeguards.”