Released October 6, 2023

Newsletter Highlights

For full stories, please scroll down.

New Laws Enacted

  •  A California court has postponed enforcement of the new California Consumer Privacy Act (CCPA) regulations until March 29, 2024. However, the decision does not postpone the California Privacy Rights Act’s (CPRA) expansion of the CCPA’s protections to employee and independent contractor data.
  •  As a presidential election year looms, Maine has enacted a new law preventing employers from taking negative employment actions against an employee who declines to attend an employer-sponsored meeting, or declines to receive or listen to a communication from their employer, if the meeting or communication is to convey the opinion of the employer about religious or political matters. New York, Minnesota, and Connecticut have also recently passed similar “captive audience” laws.

Pending Bills

  •  The California legislature has sent a bill that would prohibit caste discrimination to the desk of Governor Newsom, who is expected to sign it into law. Once signed, SB403 would be the first state-level law prohibiting discrimination based on caste, which is defined as an “individual’s perceived position in a system of social stratification on the basis of inherited status.”

For the full stories, keep reading below.

New Laws Enacted

Enforcement of the New California Consumer Privacy Act (CCPA) Regulations Postponed until March 29, 2024

In a recent development concerning the California Consumer Privacy Act (CCPA) and its subsequent amendments through the California Privacy Rights Act (CPRA), a California court decision has changed the enforcement timeline of certain regulations. On June 30, 2023, just one day before the scheduled enforcement start date of July 1, 2023, the court postponed the enforcement of the new CCPA regulations until March 29, 2024. This turn of events has implications for businesses, not only those based in California, but any company that does significant business with customers in California.

The CCPA regulations, which were finalized in March 2023, cover a wide range of topics including data processing agreements, opt-out mechanisms, and consumer data requests. The delay in enforcing the CCPA regulations stems from a legal challenge initiated by the California Chamber of Commerce, which argued that enforcement should not occur until one year after the finalization of the regulations, as specified by the CCPA. The court concurred with this argument.

While the enforcement of these regulations is now postponed until March 29, 2024, many businesses will continue to prepare for compliance, given the extensive obligations introduced by these regulations.

It’s crucial to emphasize that this ruling does not affect the enforcement of the recent changes to the CCPA statute itself that were made as a result of the CPRA, which became effective on January 1, 2023. Those statutory changes included, among other things:

  • Compliance with requirements related to the disclosure, collection, safeguarding, and sharing of personal information of employees and independent contractors;
  • Additional or expanded rights for consumers, such as the right to opt out of sharing, the right to correct inaccurate personal information, and the right to limit the use of personal information; and
  • Increased disclosure obligations, such as requiring businesses to provide detailed information in their privacy policies, including categories of sharing and sources of information, purposes for data collection, and more.

Maine Becomes Latest State to Protect Employees’ Rights to Opt Out of Meetings and Communications about the Religious or Political Opinions of their Employer

Maine has joined the growing list of states taking action to protect employees’ rights to opt out of attending employer-sponsored meetings or receiving employer-sponsored communications that convey the opinion of their employer about religious or political matters.

On October 25, 2023, a new law in Maine will go into effect making it illegal for employers to require employee attendance at, or participation in, such meetings, or to receive or listen to these types of communications. Similarly, employers cannot retaliate against employees for refusing to attend, participate, or receive such communications. The law does not prohibit wholly voluntary participation by employees, nor does it apply to religious employers as defined under the law.

LD 1756, known as “An Act to Protect Employee Freedom of Speech,” is part of a broader trend across several states in the United States. Similar measures have been passed this year in Connecticut, Minnesota, New York. Those states joined Oregon who has had a similar law on its books since 2009.

These laws, often called “captive audience laws,” seek to shield employees from being required to attend employer-led discussions about religion or politics and protect employees from retaliation if they choose not to engage in discussions or receive information about religious or political matters as mandated by their employers. Maine’s LD 1756 also prohibits employers from taking adverse actions, such as discharging or disciplining employees, threatening them with termination, or otherwise penalizing them for declining to participate in these kinds of meetings or communications.

While LD 1756 in Maine garnered bipartisan support in the state’s House and Senate, some adjustments were made to the original bill during the legislative process.

Meanwhile, California may be the next state to pass similar legislation. Senate Bill 399, currently under consideration in California, could further expand these protections in that state, should it become law.

Pending Bills

California Set to Become First State to Prohibit Discrimination Based on Caste

California is poised to make history by becoming the first U.S. state to outlaw discrimination based on caste. The state legislature has passed SB 403, a bill that aims to amend state anti-discrimination laws to add “caste” to the list of legally protected categories such as sex, race, religion, sexual orientation, and more. The legislation is now awaiting the signature of Governor Gavin Newsom, who has until October 14, 2023, to take action on it.

The bill defines “caste” as “an individual’s perceived position in a system of social stratification on the basis of inherited status. A ‘system of social stratification on the basis of inherited status’ may be characterized by factors that may include, but are not limited to, inability or restricted ability to alter inherited status; socially enforced restrictions on marriage, private and public segregation, and discrimination; and social exclusion on the basis of perceived status.”

Currently, the only other U.S. jurisdiction that prohibits caste-based discrimination is the city of Seattle, Washington.

Many expect Governor Newsom to sign the bill; if signed, it will go into effect on January 1, 2024. If enacted, employers in California should work with their HR and legal counsel to ensure their anti-discrimination policies, including their training programs, align with the new law.

Disclaimer: this information is not intended as legal advice. Please consult with legal counsel to ensure your organization’s compliance with applicable legal requirements.