Will new privacy laws impact screening?

Privacy is kind of a big deal.

 

But these days shared information is stock and trade, especially for tech companies. The whole idea of privacy protection has prompted a pile of new questions. Are companies being responsible with all our data? When they trade consumer information, do they have our best interest at heart? Or is privacy just a thing of the past?

 

Recent scrutiny may be part of the reason California adopted a sweeping new law this summer. Not totally unlike the European Union’s General Data Protection Regulation, California’s new Consumer Privacy Act will roll out as one of the nation’s toughest data privacy laws.

 

How will it work?

Although it won’t officially launch until 2020, their law aims to give consumers more control. Requirements for companies include sharing what information they’re gathering, why they’re gathering it, and with whom they’re sharing it. The law says consumers can decline to share their information; consumers under 16 must opt-in to be able to share information.

 

What will it mean for business?

Because of the law’s broad language, it has the potential to impact businesses big and small. (It won’t necessarily matter whether or not that business is physically located in California.) And what will it cost to comply? That remains to be seen.

 

Will it impact screening?

Experts seem to agree the law will most likely be tweaked some before 2020 rolls around. They also agree the law has plenty of far-reaching effects for multiple industries. But the big question is: will it impact background screening? Generally, the answer is no. As it stands now, language in the bill exempts information collected under the Fair Credit Reporting Act.

 

When it comes to screening, it always helps to have someone on your side. A partner like ClearStar can help you navigate the ever-changing regulatory landscape, so you’re always in-the-know. Call us today!

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