Articles Posted in Business Law

It seems we cannot go a day without big news regarding online security and privacy or the lack thereof. Most recently it was Target and tomorrow who knows. California has always been at the forefront when it comes to protecting consumers and internet privacy. Thus it comes as no surprise that, as of January 1, 2014, every business with an online presence will need to comply with California’s amendment to its Online Privacy Protection Act. This recent amendment has teeth and you must comply if a California resident clicks on your commercial web site either through his computer or mobile phone.

In a nutshell, privacy policies will now be required to include how the website will respond to a web browser’s “do not track” security option and if the web site allows third parties to collect personally identifiable information from users and across third party websites. Failure to comply will cost you $2,500 for each violation. However, before any fine is imposed, the noncomplying business will be given 30 days to correct its privacy disclosures.

What is interesting about this new law is that while it places the onus on businesses to state how their website responds to a customer’s “do not track” option, it does not require the business to honor that request. We are truly operating in one unified economy and it is becoming increasingly important to be aware of the laws of other states as you do business on the global web.
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Earlier in the Fall I talked about NJ’s proposed privacy bill that would prohibit employers from requiring employees and job applicants to disclose their private social media account information. (Click here for prior post) Well, the law took effect December 1. Be mindful that this new law applies to all employers regardless of size.
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Governor Christie signed into law on August 29 a privacy bill that prohibit employers from requiring employees and job applicants to disclose their private social media account information. The law will become effective December 1, 2013. Click here for a related blog entry I wrote on a similar law in Philadelphia.

First off, the law will apply to ALL NEW JERSEY EMPLOYERS regardless of size. Yes that is correct; there is no minimum number of employees for this law to apply. There is a minor exception relating to state and county jails and parole officers but for purposes of this entry, this law applies to ALL NEW JERSEY EMPLOYERS.

Under this law, an employer will not be able to force an applicant or a current employee to disclose any password, user name or other account login information to any social media that is used exclusively for personal communications and is unrelated to a business purpose of the employer. It will be a violation of this law if you even ask a prospective job applicant or current employee if they have a social networking site. However, there is nothing in this law that would prevent an employer from doing his own search to see if the prospective employee has her own social media accounts at Facebook and similar sites.

Like most laws, there are exceptions. In certain limited circumstances, an employer will be allowed to compel an employee to disclose his or her username and password. For example, disclosure may be required for (1) the employer to comply with a state or federal statute; or (2) employer investigations of workplace misconduct or theft of proprietary or confidential information. In each workplace investigation, the employer must be acting on credible and specific information and not be conducting a fishing expedition.

The law has anti-retaliation provisions designed to protect the applicant or employee from adverse actions of an employer who violates this law. If an employer does violate this law it will be fined $1,000 for the first violation and $2,500 for each successive violation. The proceeds will be collected by the Commissioner of Labor.
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