Legislative Update for PeopleSoft HCM - California Data Privacy Update

FYI – This may affect your organization…please read.

California has recently passed the United States toughest data privacy law “The California Consumer Privacy Act of 2018 (AB378)”.  Similar to GDPR (General Data Protection Regulation) in the European Union, it gives consumers more control over the use of their data.  For any company that has assets in California or handles Californians’ personal information, California’s new Consumer Privacy Act of 2018 will likely have an impact on an origination’s business operations. 

Organizations around the world have to comply with the California Consumer Privacy Act if they receive personal data from California residents and if they — or their parent company or a subsidiary — exceed one of three thresholds: (a) annual gross revenues of $25 million; (b) obtains personal information of 50,000 or more California residents, households or devices annually; or (c) 50 percent or more annual revenue from selling California residents’ personal information. Parent companies and subsidiaries using the same branding are covered in the definition of "business," even if they themselves do not exceed the applicable thresholds.

As written, the California Consumer Privacy Act of 2018 requires the following:

·         The new law grants consumers the right to know what information companies are collecting about them, why they are collecting that data and with whom (3^rd parties) they are sharing it.

·         Gives consumers the right to tell companies to delete their information as well as to not sell or share their data.

·         It also makes it more difficult to share or sell data on children younger than 16.

The California Consumer Privacy Act of 2018 legislation is similar to the GPDR law which went into effect May 2018.  To assist organizations with managing data privacy, Oracle has delivered several new features within PeopleSoft HCM like Employee and Applicant Delete (right to be forgotten), Acknowledgement Framework (for consent).  For additional information on the delivered data privacy features – https://blogs.oracle.com/psftlegupdates/peoplesoft-hcm-data-privacy-update

Failure to comply with these new laws could be costly to businesses with civil penalties resulting from an action by the state attorney general of up to $7,500 per violation. 

The legislation,  goes into effect in January 1^st, 2020