Two Arizona Laws Addressing Data Breaches and Hiring Ex-Offenders Take Effect on July 21

Written By ESR News Blog Editor Thomas Ahearn

In April of 2018, Arizona Governor Doug Ducey signed into law two pieces of legislation that will affect most employers in the state when they both take effect on July 21, 2018. House Bill 2154 (HB 2154) will give employers updated guidance and notice procedures when dealing with data breaches while House Bill 2311 (HB 2311) will offer limited liability protections for employers who hire ex-offenders with past criminal records.

Arizona HB 2154

HR 2154 will increase employer notification requirements for victims of data breaches and more broadly define “personal information.” Arizona employers that discover data breaches must conduct an investigation and will be required to notify affected individuals within 45 days after discovery. HR 2154 clarifies notification requirements and acceptable forms of notice must now include the following data:

  • The approximate date of the breach;
  • A brief description of the personal information included in the breach;
  • The toll-free numbers and addresses for the three largest consumer reporting agencies; and
  • The toll-free number, address, and website address for the Federal Trade Commission (FTC) or any federal agency that assists consumers with identity theft matters.

For data breaches affecting more than 1,000 individuals, HR 2154 requires employers to notify the three largest nationwide credit reporting agencies – Equifax, Experian, and TransUnion – and the state attorney general. Violations of HR 2154 will result include civil penalties not to exceed $10,000 per individuals affected by the data breach or the total amount of economic loss with a maximum penalty of $500,000.

Arizona HB 2311

HB 2311 prohibits introducing evidence of criminal offenses “except violent offenses and sexual offenses” of employees or contractors before the hire date in negligent hiring cases but does not preclude lawsuits for negligent supervision or for convictions of crimes directly job-related if an employer knew of the conviction or acted in a “grossly negligent” manner in not knowing. The protections also do not apply in the following cases:

  • The misuse of monies or property of a person other than the employer by an employee or contractor who had previously been convicted of an offense that includes the misuse of monies or property prior to being hired and it was foreseeable that the position would include fiduciary responsibilities.
  • The misappropriation of monies by an employee/contractor who prior to being hired had previously been convicted of an offense that includes fraud or the misuse of monies or properties.
  • A violent offense or improper use of excessive force by employee/contractor hired as a law enforcement officer or security guard.

In November 2017, ESR News reported that Arizona Governor Ducey adopted “Ban the Box” hiring procedures by issuing Executive Order 2017-07 to provide increased job opportunities to Arizonans with criminal records. Arizona state agencies will delay questions about the criminal records of applicants for state jobs until after the initial interview to ensure ex-offenders receive fair consideration for work.

Employment Screening Resources® (ESR) offers a complimentary whitepaper written by ESR founder and CEO Attorney Lester Rosen entitled “Ten Critical Steps for Ex-Offenders to Get Back into the Workforce” to help applicants with criminal records find jobs. The whitepaper is at www.esrcheck.com/Tools-Resources/Whitepaper-Library/Ten-Steps-for-Ex-Offenders-to-Get-Back-in-Workforce/.

More ESR News Blogs about Data Breaches and Ex-Offenders

Employment Screening Resources® (ESR) – a leading global background check provider – offers updates on state background screening laws for employers to make sure they comply not only with screening laws in their home state but also in states where they may conduct business. To read more ESR News blogs about background screening laws in Arizona, visit www.esrcheck.com/wordpress/tag/arizona/.

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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