BILL NO A06790A
SAME AS SAME AS S07202
COSPNSR Abinanti, Gunther, Mosley, Markey, Gottfried, Weprin, Montesano,
Rosenthal, Millman, Colton, Jaffee, Cahill, O'Donnell,
Peoples-Stokes, Roberts, Scarborough, Steck, Raia, Perry, Hooper,
Moya, Skoufis, Simotas, Otis, Rodriguez
MLTSPNSR Arroyo, Brennan, Clark, Cook, Crouch, Galef, Glick, Jacobs,
McDonough, Schimel, Simanowitz, Stec, Titone, Weisenberg
Rel S380-u to be S380-v, add S380-u, Gen Bus L
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
BILL NO A06790A
04/18/2013 referred to consumer affairs and protection
06/03/2013 reported referred to codes
06/12/2013 reported referred to rules
06/17/2013 rules report cal.340
06/17/2013 ordered to third reading rules cal.340
06/20/2013 passed assembly
06/20/2013 delivered to senate
06/20/2013 REFERRED TO RULES
01/08/2014 DIED IN SENATE
01/08/2014 RETURNED TO ASSEMBLY
01/08/2014 ordered to third reading cal.322
01/13/2014 amended on third reading (t) 6790a
03/03/2014 passed assembly
03/03/2014 delivered to senate
03/03/2014 REFERRED TO CONSUMER PROTECTION
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: Section 380-u of the
article is relettered section 380-v, and a new section 380-u is added.
Section 2: Section 380-u(a) is added to ban 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.
Section 380-u(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-u(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
Section 380-u(d) allows for a private cause of action to be commenced
by any person injured by the violation of this section.
Section 3: Contains the effective date.
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 DATE: This act shall take effect on the one hundred and
eightieth day after it shall have become a law.
S T A T E O F N E W Y O R K
Cal. No. 322
2013-2014 Regular Sessions
I N A S S E M B L Y
April 18, 2013
Introduced by M. of A. BRAUNSTEIN, ABINANTI, GUNTHER, MOSLEY, MARKEY,
GOTTFRIED, WEPRIN, MONTESANO, ROSENTHAL, MILLMAN, COLTON, JAFFEE,
CAHILL, O'DONNELL, PEOPLES-STOKES, ROBERTS, SCARBOROUGH, STECK, RAIA,
PERRY, HOOPER, MOYA, SKOUFIS, SIMOTAS, OTIS, RODRIGUEZ -- Multi-Spon-
sored by -- M. of A. ARROYO, BRENNAN, CLARK, COOK, CROUCH, GALEF,
GLICK, JACOBS, McDONOUGH, SCHIMEL, SIMANOWITZ, STEC, TITONE, WEISEN-
BERG -- read once and referred to the Committee on Consumer Affairs
and Protection -- advanced to a third reading, amended and ordered
reprinted, retaining its place on the order of third reading
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:
1 Section 1. Section 380-u of the general business law, as relettered
2 by chapter 63 of the laws of 2006, is relettered section 380-v and a new
3 section 380-u is added to read as follows:
4 S 380-U. SALE AND USE OF EMPLOYMENT INFORMATION. (A) NO CONSUMER
5 REPORTING AGENCY OR ANY SUBSIDIARY THEREOF SHALL SELL OR RESELL, OR
6 OFFER FOR SALE OR RESALE OR DISTRIBUTE EMPLOYMENT INFORMATION TO ANY
7 PRINCIPAL CREDITOR, AS THAT TERM IS DEFINED IN SUBDIVISION THREE OF
8 SECTION SIX HUNDRED OF THIS CHAPTER, OR OTHER DEBT COLLECTOR WITHOUT
9 VERIFYING THAT SUCH SALE, RESALE, OR DISTRIBUTION WAS DISCLOSED TO THE
10 CONSUMER TO WHOM SUCH EMPLOYMENT INFORMATION PERTAINS WITHOUT WRITTEN
11 CONSUMER CONSENT IN A SEPARATE STAND-ALONE DOCUMENT. EMPLOYMENT INFOR-
12 MATION SHALL INCLUDE, BUT NOT BE LIMITED TO, PAYROLL AND EARNINGS INFOR-
13 MATION, HOURS WORKED, CONSUMER HISTORY AND HEALTH INSURANCE INFORMATION.
14 (B) SUCH DISCLOSURE AND CONSUMER CONSENT SHALL BE GIVEN IN A SEPARATE,
15 STAND-ALONE DOCUMENT AND CONSENT SHALL BE LIMITED TO THE PARTICULAR USE
16 OR TRANSACTION FOR WHICH CONSENT IS GIVEN.
17 (C) WHEREVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICA-
18 TION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 6790--A 2
1 THE STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A
2 SPECIAL PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE
3 DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE CONTIN-
4 UANCE OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
5 THE COURT OR JUSTICE THAT THE DEFENDANT HAS, IN FACT, VIOLATED THIS
6 SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
7 AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY
8 PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. IN ANY SUCH
9 PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
10 PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
11 HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
12 TION. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS
13 SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
14 THAN TWO THOUSAND DOLLARS FOR EACH VIOLATION. IN CONNECTION WITH ANY
15 SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE
16 PROOF AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE
17 SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
18 (D) IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
19 PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF
20 ANY VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME
21 TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER
22 ACTUAL DAMAGES OR ONE THOUSAND DOLLARS, WHICHEVER IS GREATER, OR BOTH
23 SUCH ACTIONS. THE COURT MAY, IN ITS DISCRETION, AWARD THE PREVAILING
24 PLAINTIFF IN SUCH ACTION AN ADDITIONAL AWARD NOT TO EXCEED FIVE THOUSAND
25 DOLLARS, IF THE COURT FINDS THE DEFENDANT WILLFULLY VIOLATED THE
26 PROVISIONS OF THIS SECTION. THE COURT MAY AWARD REASONABLE ATTORNEYS'
27 FEES TO A PREVAILING PLAINTIFF.
28 S 2. This act shall take effect on the one hundred eightieth day after
29 it shall have become a law.