The SPARK Institute asked California lawmakers Thursday to make some changes to the state's new data privacy law to protect employers' ability to offer employment-related benefits.
The California Consumer Privacy Act went into effect January, but enforcement does not begin until July 1.
In a letter to lawmakers, SPARK Institute officials expressed hope that California will extend some temporary protections for employee benefits that are set to end in 2021.
"The mission of SPARK is to promote employer-sponsored retirement plans. So, while CCPA offers valuable consumer protections, we see the law also sweeping in beneficial data-sharing necessary for the administration of employee benefits," SPARK Institute Executive Director Tim Rouse said in a statement.
The SPARK Institute represents a broad cross-section of retirement plan service providers and investment managers serving some 100 million participants in defined contribution plans.
One simple solution is allowing the use of a single employee notice provided at the time of hiring, said David Levine of Groom Law Group, who is representing the industry on the changes sought. "We are simply asking that the law be made clearer that businesses engaged in the legitimate collection of employment-related information be recognized."
Rules for enforcing the data privacy law are still in the works. On Feb. 7, California Attorney General Xavier Becerra released draft rules for enforcing the new law.
Mr. Becerra also wrote to U.S. lawmakers Tuesday urging them to not preempt state privacy laws as they consider a federal approach. As many as 10 states are considering enacting their own consumer privacy acts.