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Many thanks to Lothar Determann and Jonathan Tam for this post.

Some of your job applicants and employees in California may be alarmed if you tell them you sell their personal information. But you will have to say you sell their personal information if you disclose their personal information to third parties after January 1, 2022 without including certain data processing clauses in your contracts, as required by the California Consumer Privacy Act (CCPA). So we recommend reviewing these contracts to ensure they include the prescribed clauses if you wish to avoid being a “seller” of personal information.

You should also get ready to field data access, deletion, correction, portability and other requests from your employees and other personnel in California starting January 1, 2023. This will require implementing new protocols and training up your human resources and compliance teams. We also recommend tightening up your data retention and deletion protocols to limit the amount of information you have to review when handling data subject requests.

Do you use employee monitoring software or algorithms to help you evaluate job applicants? You should ensure that your use of these and similar tools address upcoming requirements regarding automated decision-making, risk assessments and the use of sensitive personal information. Note that the CCPA also currently requires employers to issue privacy notices to their California employees pursuant to a California Privacy Rights Act (CPRA) amendment that took effect on December 16, 2020.

There is an HR exception under the CCPA but it is not comprehensive and expires January 1, 2023. When the CCPA originally passed in 2018, it included a limited, temporary carve-out for personal information of job applicants, employees, independent contractors and other personnel, who only needed to receive a brief “notice at collection.” The CPRA extended the limited carve-out until January 1, 2023 and immediately expanded the list of disclosures that employers have to provide to employees and candidates at or before the time of collecting their personal information.[1] Such “notices at collection” must include details about the types of personal information collected, the purposes for which the information is collected, and how long the personal information is retained or the criteria for determining the same. The California Attorney General’s CCPA Regulations also require notices at collection to indicate whether the business sells California residents’ personal information and a notice of the their right to opt-out of sales if so, and a link to the business’s privacy policy.[2] You should begin to address these requirements immediately if you have not done so already.


Continue Reading Employers Must Prepare Now For New California Employee Privacy Rights

Special thanks to Ginger Partee, John Foerster and Matthew Gorman.

Noncitizen travelers can pack their bags. With certain requirements, noncitizen travelers will be allowed to travel to the US as of November 8, 2021, under President Biden’s Proclamation on Advancing the Safe Resumption of Global Travel During the COVID-19 Pandemic. The new

Special thanks to guest contributor, Christopher Guldberg

The Internal Revenue Service has issued welcome guidance related to the COBRA subsidy provisions under the American Rescue Plan Act (“ARPA”) in the form of IRS Notice 2021-31 (the “Notice”).

As background, for the period from April 1, 2021, through September 30, 2021, ARPA requires employers to

Special thanks to guest contributors Christopher Guldberg and Janel Brynda.

The American Rescue Plan Act of 2021 (the “ARPA”), was signed into law on March 11, 2021, and creates a temporary COBRA premium subsidy for certain qualifying individuals. This COBRA premium subsidy applies to all group health plans subject to the Employee Retirement Income Security Act of 1974.  Thus, most employers will be impacted by the new COBRA subsidy.

Employers will need to evaluate the impact of the ARPA not only with respect to COBRA administration, but equally important,  employers may need to make changes to their severance arrangements to take into account the temporary COBRA subsidy.

The ARPA provides that an assistance eligible individual who elects COBRA coverage will be deemed to have paid 100% of any applicable COBRA premium (including the 2% administrative charge) during the period April 1, 2021 to September 30, 2021. In this respect, ARPA differs from the premium assistance under the American Recovery and Reinvestment Act of 2009 that only provided for a partial premium subsidy for eligible individuals.


Continue Reading The American Rescue Plan of 2021 Requires Employer Action and Potential Updates to Severance Arrangements

Special thanks to guest contributors Monica Kurnatowska, Bernhard Trappehl and James Brown.

In brief

The EU Commission has proposed a directive that would reinforce the entitlement to equal pay for men and women for the same work, or work of equal value, including by giving employees the right to comparative pay information and by requiring gender pay gap reporting for employers with 250+ employees, amongst other measures. Some EU member states already have aspects of these rules, while others do not, meaning that the rules could be a significant additional compliance burden for some organisations. The rules, if adopted, would be unlikely to come into force before late 2024.

Key takeaways

The EU Commission has proposed a new directive on pay transparency. If adopted, it would:

  • Require measures to ensure employers pay the same work, or work of equal value, equally.
  • Require employers to provide initial salary (or salary range) information to job applicants, pre-interview.
  • Prohibit employers from asking job applicants about salary history.
  • Create a right for a worker to request information about:
  • Their own pay level
  • Average pay levels, broken down by gender and categories of workers doing the same work / work of equal value
  • Require gender pay gap (GPG) reporting for employers with 250+ employees.
  • Create joint pay assessments if:
  • GPG is 5%+ for any category of workers doing the same work or work of equal value, and
  • employer has not justified the GPG.

Based on previous experience, we estimate that these proposals, if adopted, would need to be implemented by sometime in late 2024.


Continue Reading European Union: Commission Proposes Pay Transparency Rules to Secure Equal Pay