On August 30, 2020, the California Legislature passed AB-1281 which, if signed by Governor Newsom, will extend two key exemptions to the California Consumer Privacy Act (the “CCPA”) until January 1, 2022.  The extension of these exemptions, which will otherwise expire on January 1, 2021 without legislative or voter action, will come as welcome news to businesses as they continue to implement CCPA-compliant policies and procedures.

The two exemptions are the “employee” exemption and the “business-to-business” (“B2B”) exemption:

  • The employee exemption provides that personal information collected by a business in the employment context is mostly exempt from the CCPA provided that it is used (1) in the course of an individual’s employment, (2) to maintain an emergency contact on file, or (3) to administer benefits to another person.
  • Under the B2B exemption, personal information reflected in communications between businesses is largely exempt from the CCPA if the consumer is acting on behalf of a business and is conducting due diligence or providing or receiving a product or service.

The California Privacy Act Rights Act (“CPARA”), if approved by California voters in November, will supersede AB-1281’s extensions.  The CPARA, however, would in fact further extend these exemptions until January 1, 2023.

For more information as to the extent of these exemptions, CCPA generally, and other states’ privacy laws, please contact us.