Governor Kathy Hochul signed several bills last month designed to strengthen protections for the personal data of consumers. One of those bills (S2659B) makes important changes to the notification timing requirements under the Empire State’s breach notification law, Section 899-aa of the New York General Business Law. The bill was effective immediately
$600,000 Reasons To Review Your SHIELD Act Compliance Program: NY Attorney General Announces Significant Settlement Stemming From Email Data Breach
On January 24, 2022, New York Attorney General Letitia James announced a $600,000 settlement agreement with EyeMed Vision Care, a vision benefits company, stemming from a 2020 data breach compromising the personal information of approximately 2.1 million individuals across the United States, including nearly 99,000 in New York State (the “Incident”).
This settlement was the
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In April, we posted about the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issuing cybersecurity guidance for employee retirement plans. That is, April 14, 2021. Shortly thereafter, the DOL updated its audit inquiries to include probing questions for plan fiduciaries about their compliance with “hot off the press” agency guidelines.
So, what
Connecticut on its Way to an Enhanced Data Breach Notification Law
UPDATE: On June 16, Gov. Ned Lamont signed HB 5310 into law which becomes effective October 1, 2021.
State legislatures across the nation are prioritizing privacy and security matters, and Connecticut is no exception. This week, Connecticut Attorney General William Tong announced the passage of An Act Concerning Data Privacy Breaches, a measure that
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New York SHIELD Act FAQs
Over the past few months, businesses across the country have been focused on the California Consumer Privacy Act (CCPA) which dramatically expands privacy rights for California residents and provides a strong incentive for businesses to implement reasonable safeguards to protect personal information. That focus is turning back east as the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act), becomes effective in less than two weeks. With the goal of strengthening protection for New York residents against data breaches affecting their private information, the SHIELD Act imposes more expansive data security and updates its existing data breach notification requirements.
This post highlights some features of the SHIELD Act. Given the complexities involved, organizations would be well-served to address their particular situations with experienced counsel.
When does the SHIELD Act become effective?
The SHIELD Act has two effective dates:
- October 23, 2019 – Changes to the existing breach notification rules
- March 21, 2020 – Data security requirements
Which businesses are covered by the SHIELD Act?
The SHIELD Act’s obligations apply to “[a]ny person or business which owns or licenses computerized data which includes private information” of a resident of New York. Previously, the obligation to provide notification of a data breach under New York’s breach notification law applied only to persons or businesses that conducted business in New York.
Are there any exceptions for small businesses?
As before the SHIELD Act, there are no exceptions for small businesses in the breach notification rule. A small business that experiences a data breach affecting the private information of New York residents must notify the affected persons. The same is true for persons or businesses that maintain (but do not own) computerized data that includes private information of New York residents. Persons or businesses that experience a breach affecting that information must notify the information’s owner or licensee.
However, the SHIELD Act’s data security obligations include some relief for small businesses, defined as any person or business with:
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