NY State Senate Bill 2025-S3523

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 28, 2025	referred to consumer protection

2025-S3523 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Rel §380-v to be §380-w, add §380-v, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7202
2015-2016: S3795, S6796
2017-2018: S6577
2019-2020: S3970
2021-2022: S6621
2023-2024: S5666

2025-S3523 (ACTIVE) - 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.

2025-S3523 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3523

SPONSOR: SCARCELLA-SPANTON
 
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 infor-
mation.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Section 380-v of the article is re-lettered section 380-w,
and a new section 380-v is added.

Section 2: Section 380-v (a) is added to ban the sale of employment
information by consumer reporting agencies without verifying that such
sale was disclosed to consumer 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.

Section 380-v (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.

Section 380-v(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 report-
ing agencies.

Section 380-v (d) allows for a private cause of action to be commenced
by any person injured by the violation of this section. Additionally,
the individual injured may recover actual damages and one thousand
dollars. The court may award the plaintiff an additional award not to
exceed $5,000 if the court finds that the defendant willfully violated
the provisions of this section. The court may also award reasonable
attorneys' fees to a prevailing plaintiff.

Section 380-v (e) this legislation does not limit any other rights
otherwise available to the consumer.

Section 3: An effective date of 180 days after signed into 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:

2024; Held in Consumer Protection Committee.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred and eightieth day.

2025-S3523 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3523
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2025
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- 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-v of the general business law, as relettered
 by chapter 441 of the laws of 2014, is relettered section  380-w  and  a
 new section 380-v is added to read as follows:
   §  380-V.  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 IN A SEPARATE
 STAND-ALONE DOCUMENT, AND THAT WRITTEN CONSENT FROM  SUCH  CONSUMER  WAS
 OBTAINED.   EMPLOYMENT INFORMATION SHALL INCLUDE, BUT NOT BE LIMITED TO,
 PAYROLL AND EARNINGS INFORMATION, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07438-01-5

 S. 3523                             2
 
 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
 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 THEIR OWN  NAME  TO
 ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER THEIR COMPEN-
 SATORY DAMAGES AND ONE THOUSAND DOLLARS, 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.
   (E) NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT THE  RIGHTS,  REME-
 DIES  OR PRIVILEGES THAT ARE OTHERWISE AVAILABLE TO A CONSUMER AT LAW OR
 EQUITY.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S3523

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

Actions

2025-S3523 (ACTIVE) - Details

2025-S3523 (ACTIVE) - Summary

2025-S3523 (ACTIVE) - Sponsor Memo

2025-S3523 (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2025-S3523

Senate Bill S3523

Share this bill

Sponsored By

Jessica Scarcella-Spanton

Current Bill Status - In Senate Committee Consumer Protection Committee

Actions

2025-S3523 (ACTIVE) - Details

2025-S3523 (ACTIVE) - Summary

2025-S3523 (ACTIVE) - Sponsor Memo

2025-S3523 (ACTIVE) - Bill Text download pdf

Comments