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NJ Amendment to Data Breach Notification Law, Moves to Governor

In light of several large-scale breaches of late, the New Jersey General Assembly is taking steps to enhance the state’s data breach notification requirements. In late February, Assembly Bill 3245 (AB 3245), introduced by Assembly Members Ralph Caputo and Carol Murphy, was unanimously approved by both the Assembly and the Senate, and is now headed to Governor Phil Murphy for signing. In short, if signed, AB 3245, would require businesses to notify consumers of online account security breaches.

New Jersey’s data breach notification law requires businesses to notify consumers of a breach of their personal information. Currently the law defines personal information as an individual’s first name or first initial and last name linked with any one or more of the following data elements:

  • Social Security number;
  • driver’s license number or State identification card number;
  • account number or credit or debit card number, in combination with any required security code, access code, or password that would permit access to an individual’s financial account.

AB 3245 would add to the above list of data elements:

  • user name, email address, or any other account holder identifying information, in combination with any password or security question and answer that would permit access to an online account. 

This amendment would keep New Jersey in line with other states that have similarly enhanced their data breach notification laws to address online breaches, including Alabama, Arizona, California, Florida, Illinois, Nebraska, Nevada, South Dakota and Wyoming.

“Protecting the security of online accounts is important for consumers, as a breach of security of these accounts can lead to the compromise of personal information and expose consumers to identity theft,” said Caputo (D-Essex). “If an individual’s personal information has become unwillingly available to someone else, they have the right to know as quickly as possible.”

New Jersey is on the forefront of consumer privacy and security law with other related bills recently introduced including AB 4902which creates new obligations for commercial entities whose online website or services are accessed by individuals, and AB 7974 that regulates the use of a customer’s GPS data.  Be on the look out for our full update on some of New Jersey’s other initiatives, coming later this week.

Jackson Lewis P.C. © 2019

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About this Author

Principal

Joseph J. Lazzarotti is a Principal in the Morristown, New Jersey, office of Jackson Lewis P.C. He founded and currently helps to co-lead the firm's Privacy, e-Communication and Data Security Practice, edits the firm’s Privacy Blog, and is a Certified Information Privacy Professional (CIPP) with the International Association of Privacy Professionals.

In short, his practice focuses on the matrix of laws governing the privacy, security and management of data, as well as the impact and regulation of social media. He also...

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Jason C. Gavejian, Employment Attorney, Jackson Lewis, Principal, Restrictive Covenants Lawyer
Principal

Jason C. Gavejian is a Principal in the Morristown, New Jersey, office of Jackson Lewis P.C. and a Certified Information Privacy Professional (CIPP/US) with the International Association of Privacy Professionals.

Mr. Gavejian represents management exclusively in all aspects of employment litigation, including restrictive covenants, class-actions, harassment, retaliation, discrimination and wage and hour claims in both federal and state courts. Additionally, Mr. Gavejian regularly appears before administrative agencies, including the Equal Employment Opportunity Commission, the Office for Civil Rights (OCR), the New Jersey Division of Civil Rights, and the New Jersey Department of Labor. His practice also focuses on advice/counseling employers regarding daily workplace issues.

Mr. Gavejian represents companies with respect to inquiries from the HHS/OCR, state attorneys general, and other agencies alleging wrongful disclosure of personal/protected information. Mr. Gavejian negotiates vendor agreements and other data privacy and security agreements, including business associate agreements. His work in the area of privacy and data security includes counseling and coaching clients through the process of investigating and responding to breaches of the personally identifiable information (PII) or protected health information (PHI) they maintain about consumers, customers, employees, patients, and others, while also assisting clients in implementing policies, practices, and procedures to prevent future data incidents.

Mr. Gavejian’s litigation experience, coupled with his privacy practice, provides him with a unique view of many workplace issues and the impact privacy, data security, and social media may play in actual or threatened lawsuits.

Mr. Gavejian regularly provides training to both executives and employees and regularly speaks on current privacy, data security, monitoring, recording, BYOD/COPE, biometrics (BIPA), social media, TCPA, and information management issues. His views on these topics have been discussed in multiple publications, including the Washington Post, Chicago Tribune, San Francisco Chronicle (SFGATE), National Law Review, Bloomberg BNA, Inc.com, @Law Magazine, Risk and Insurance Magazine, LXBN TV, Business Insurance Magazine, and HR.BLR.com.

Mr. Gavejian is the Co-Chair of Jackson Lewis’ Hispanic Attorney Resource Group, a group committed to increasing the firm’s visibility among Hispanic-American and other minority attorneys, as well as mentoring the firm's attorneys to assist in their training and development. Mr. Gavejian also previously served on the National Leadership Committee of the Hispanic National Bar Association (HNBA) and regularly volunteers his time for pro bono matters.

Prior to joining Jackson Lewis, Mr. Gavejian served as a judicial law clerk for the Honorable Richard J. Donohue on the Superior Court of New Jersey, Bergen County.

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Attorney

Maya Atrakchi is the Knowledge Management (“KM”) Attorney for Jackson Lewis P.C.’s Privacy, e-Communication and Data Security and International Employment Issues Practice Groups, and is based in the New York City, New York, office of Jackson Lewis P.C.

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