A data breach affected 100 million people in the U.S. and 6 million in Canada in one of the largest data breaches of a major bank. The hacker gained access to Capital One credit applications supplied by consumers and small business who applied for credit cards between 2005 and early 2019. We’ll take a look at new measures to combat cybersecurity issues.
NICK FURY JUST HIJACKED OUR VACATION
Sen. Richard Blumenthal and Sen. Ed. Markey reintroduced two bills to address cybersecurity in vehicles and airplanes with the proliferation of connected transportation devices. The Security and Privacy in Your Car (SPY Car) Act would require the National Highway Traffic Safety Administration (NHTSA) and the Federal Trade Commission (FTC) to establish federal cybersecurity standards for vehicles. New vehicles would include a label showing consumers how the vehicle protects a user’s cybersecurity and privacy. The Cybersecurity Standards for Aircraft to Improve Resilience (Cyber AIR) Act would require the disclosure of information related to cyberattacks on aircraft systems and new standards to find and fix aviation cyber vulnerabilities. It would also require a cybersecurity evaluation of consumer WiFi on airplanes.
WHAT ARE YOU GOING TO DO?
Well, the state of New York is boosting cybersecurity by expanding the definition of breach. Gov. Andrew Cuomo signed a pair of new laws last week that will require companies to be more forthcoming with New Yorkers about cyberattacks that jeopardize private data. The Stop Hacks and Improve Electronic Data (SHIELD) Act will broaden the definition of private information, expand notification requirements, and require individuals and businesses handling sensitive information implement "reasonable" data security measures. The other bill requires consumer credit reporting agencies to offer identify theft prevention and mitigation services to consumers who’ve been affected by a breach of the agency’s system. This bill was in response to the Equifax 2017 breach, which exposed the data of 147 million people.
Just as a reminder – the New York Privacy Act, introduced in May in the State Senate, would go further than the European GDPR and California CCPA. The bill would require social media companies to disclose how they gather personal information and provide New Yorkers with the power to change, delete, and opt-out their data. This bill is different than Europe or California in that it has no minimum requirement and applies to any entity holding sensitive data of New Yorkers; contains a data fiduciary clause for companies to act in the customer’s best interests, even if it means forgoing profits; and creates a private cause of action. With more states introducing different standards of cyber and data legislation, we’ll keep watch on the federal front to see if they’ll move to a national standard.
FEDERAL MINIMUM WAGE
The U.S. House approved legislation this month to raise the federal minimum wage for the first time in a decade. The bill would raise the minimum wage from $7.25/hour to $15/hour by 2025. Earlier this month, the non-partisan Congressional Budget Office (CBO) found that raising the minimum wage to $15/hour by 2025 would boost wages for 17 million workers but would cause 1.3 million people to lose their jobs. However, Senate Majority Leader Mitch McConnell said he has no plans on bringing the bill up in the Senate.
The Labor Department released an opinion letter stating that trucking companies don’t have to pay drivers for the time they spend in the sleeping compartment of their trucks. In a departure from its longstanding interpretation of the Fair Labor Standards Act (FLSA), the Wage and Hour Division said that time drivers spend in their trucks’ sleeper berths, relieved of all duties and allowed to sleep, isn’t working time requiring compensation. However, if the driver is on call or doing any work, the time would be compensable.
Making Our Way Around the Country
The City Council approved the Fair Workweek Ordinance that mandates employers give workers early notice of their schedules and face financial penalties if they change shifts unexpectedly. The ordinance takes effect on July 1, 2020. Employers will have to give workers 10 days’ notice of their schedules. Covered industries include health care, hotels, building services, retail and warehouse services with more than 100 employees globally, or 250 employees for nonprofits. Restaurants with 250 employees and 30 locations globally and franchises with four or more locations in the city are also included. The rules apply to employees making $26/hour and salaried employees making $50,000 or less.
OHIO – PUBLIC ENTITY
The Ohio Bureau of Workers’ Compensation (BWC) is considering a proposal to cut premium rates for public employers by an average of 10% in 2020. The reduction would save Ohio’s 3,700 school districts, cities, and other local government employers $17.8 million. This would be the agency’s 11th premium reduction for public employers since 2009. The BWC Board of Director’s will vote on the proposal at its Aug. 23 meeting.
Last week, Reps. David Kustoff and Bill Foster introduced the Claims Licensing Advancement for Interstate Matters (CLAIM) Act. This legislation would help independent claims adjusters resolve insurance claims more efficiently and ensure consumers expeditiously receive funds needed by requiring states to adopt uniform and reciprocal licensing laws for independent claims adjusters. Your authors at The Way have proudly advocated in D.C alongside our industry colleagues in support of this legislation.