senate Bill S7202

Bans the use of employer data information

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / May / 2014
    • REFERRED TO CONSUMER PROTECTION

Summary

Bans the sale of employment data reports without written consumer consent; provides such employment data reports shall include, but not be limited to, payroll and earnings information, hours worked, consumer history and health insurance information.

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Bill Details

See Assembly Version of this Bill:
A6790A
Versions:
S7202
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Rel §380-u to be §380-v, add §380-u, Gen Bus L

Sponsor Memo

BILL NUMBER:S7202

TITLE OF BILL: An act to amend the general business law, in relation
to the sale and use of employment information

PURPOSE OR GENERAL IDEA OF BILL: Bans the sale of employment
information, including payroll and earnings information, hours worked,
consumer history and health insurance information.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Section 380-u the general business law, as
relettered by chapter 63 of the laws of 2006 is relettered section
380-v, and a new section 380-u is added as follows:

(a) bans the sale of employment information by consumer reporting
agencies without written consumer consent in a separate stand-alone
document, This section also adds what is included in employment
information, such as payroll and earning information, hours an
employee has worked, consumer history and health insurance
information.

(b) requires that disclosure and consumer consent must be given in a
separate, stand-alone document, and the consent is limited to the
particular use or transaction for which the consent is given.

(c) charges the Attorney General with the enforcement of this law.
This section also includes a civil penalty of 2,000 dollars for each
violation of this statute to be imposed on the consumer reporting
agencies.

(d) allows for a private cause of action to be commenced by any person
inured by the violation of this section.

Section 2: Contains the effective date of the one hundred and
eightieth day after it shall have become law.

JUSTIFICATION: The "Work Number" provides employment data reports, and
is operated by TALX Corporation, which is owned by the credit
reporting agency Equifax. The "Work Number" permits companies to
outsource payroll and human resource functions and maintains
information on at least 30% of the U.S. working population.

According to an NBC News report, Equifax has been selling employment
reports, including detailed health insurance and payroll information,
to third parties, such as debt collectors and other financial services
corporations. This is an invasion of consumers' and employees'
privacy. Moreover, many employees are unaware of this sale of their
detailed payroll information to third parties. This legislation would
prohibit consumer reporting agencies from selling employment data
reports to third parties.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None.


EFFECTIVE SATE: This act shall take effect on the one hundred and
eightieth day after it shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7202

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to  the  sale  and
  use of employment information

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 380-u of the general business law,  as  relettered
by chapter 63 of the laws of 2006, is relettered section 380-v and a new
section 380-u is added to read as follows:
  S  380-U.  SALE  AND  USE OF EMPLOYMENT INFORMATION.   (A) NO CONSUMER
REPORTING AGENCY OR ANY SUBSIDIARY THEREOF  SHALL  SELL  OR  RESELL,  OR
OFFER  FOR  SALE  OR  RESALE OR DISTRIBUTE EMPLOYMENT INFORMATION TO ANY
PRINCIPAL CREDITOR, AS THAT TERM IS  DEFINED  IN  SUBDIVISION  THREE  OF
SECTION  SIX  HUNDRED  OF  THIS CHAPTER, OR OTHER DEBT COLLECTOR WITHOUT
VERIFYING THAT SUCH SALE, RESALE, OR DISTRIBUTION WAS DISCLOSED  TO  THE
CONSUMER  TO  WHOM  SUCH EMPLOYMENT INFORMATION PERTAINS WITHOUT WRITTEN
CONSUMER CONSENT IN A SEPARATE STAND-ALONE DOCUMENT.  EMPLOYMENT  INFOR-
MATION SHALL INCLUDE, BUT NOT BE LIMITED TO, PAYROLL AND EARNINGS INFOR-
MATION, HOURS WORKED, CONSUMER HISTORY AND HEALTH INSURANCE INFORMATION.
  (B) SUCH DISCLOSURE AND CONSUMER CONSENT SHALL BE GIVEN IN A SEPARATE,
STAND-ALONE  DOCUMENT AND CONSENT SHALL BE LIMITED TO THE PARTICULAR USE
OR TRANSACTION FOR WHICH CONSENT IS GIVEN.
  (C) WHEREVER THERE SHALL BE A VIOLATION OF THIS SECTION,  AN  APPLICA-
TION  MAY  BE  MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE  CONTIN-
UANCE  OF  SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
THE COURT OR JUSTICE THAT THE DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS
SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
AND  RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY
PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED  THEREBY.  IN  ANY  SUCH
PROCEEDING,  THE  COURT  MAY  MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08805-11-4

S. 7202                             2

HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
THAN  TWO  THOUSAND  DOLLARS  FOR EACH VIOLATION. IN CONNECTION WITH ANY
SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS  AUTHORIZED  TO  TAKE
PROOF  AND  MAKE  A  DETERMINATION  OF  THE  RELEVANT FACTS AND TO ISSUE
SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
  (D) IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY  REASON  OF
ANY VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME
TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER
ACTUAL  DAMAGES  OR  ONE THOUSAND DOLLARS, WHICHEVER IS GREATER, OR BOTH
SUCH ACTIONS. THE COURT MAY, IN ITS  DISCRETION,  AWARD  THE  PREVAILING
PLAINTIFF IN SUCH ACTION AN ADDITIONAL AWARD NOT TO EXCEED FIVE THOUSAND
DOLLARS,  IF  THE  COURT  FINDS  THE  DEFENDANT  WILLFULLY  VIOLATED THE
PROVISIONS OF THIS SECTION. THE COURT MAY  AWARD  REASONABLE  ATTORNEYS'
FEES TO A PREVAILING PLAINTIFF.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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