What's happening
This bill prohibits consumer reporting agencies from selling or sharing employment information with creditors or debt collectors without separate written consent from the consumer.
Why it matters
Increases consumer control and privacy. The bill requires that any sharing of employment-related information (such as payroll, earnings, hours worked, consumer history, and health insurance details) by consumer reporting agencies with creditors or debt collectors must have explicit, written consent from the consumer in a separate document. This helps prevent unauthorized or unnoticed sharing of sensitive personal and financial data.
Limits potential misuse of employment information. By restricting the sale or distribution of employment information to only those situations where separate, transaction-specific consent is given, the bill aims to reduce the risk of this data being used against consumers in contexts unrelated to its original collection (e.g., affecting creditworthiness or debt collection practices).
Empowers legal recourse and enforcement. The bill allows both the New York Attorney General and individual consumers to take legal action against violators. This includes seeking injunctions, monetary damages, and attorney’s fees, which provides strong deterrents against non-compliance and gives affected consumers meaningful avenues for redress.
Sets explicit penalties for violations. With civil penalties up to $2,000 per violation and additional punitive damages for willful misconduct, the bill creates substantial financial risks for agencies that fail to comply, potentially shifting industry practices toward greater consumer transparency and protection.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Consumer reporting agencies and their subsidiaries
They would have to verify stand-alone disclosure and written, transaction-specific consumer consent before selling or distributing employment information to creditors or debt collectors.
Principal creditors and debt collectors
Their access to employment information, including payroll, earnings, hours worked and health insurance information, would be subject to the disclosure and consent requirements.
Consumers whose employment information is shared
They would gain consent protections, and those injured by violations could sue for damages, an injunction and potentially attorneys’ fees.
New York attorney general
The office would gain authority to investigate violations and seek injunctions, restitution and civil penalties of up to $2,000 per violation.
Headline styles
Restrict Employer Data Sharing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- 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.
Limit Sale of Job Data
Assembly Floor Calendar · Sponsor Edward Braunstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3970
2019-2020 Regular Sessions
IN SENATE
February 22, 2019
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 Assembly, 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 application 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 continuance 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02680-01-9
S. 3970 2
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 restitution. 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 compensatory 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, remedies 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 attor- neys' fees to a prevailing plaintiff.
Section 380-v(e) this legislation does not limit any other rights other- wise 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
S.6796 of 2016 - New Senate Bill for 2016 Session - referred to Senate Consumer Affairs Committee, passed Assembly S.6577 of 2017 - referred to Rules, passed Assembly S.6577 of 2018 - referred to Consumer Affairs, passed Assembly
Fiscal implications
None.
Effective date
This act shall take effect on the one hundred and eightieth day
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.