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History
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Bans the use of employer data information
In Senate Committee · Consumer Protection · Sponsor Edward Braunstein
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.