New York Security and Notification Act
In August, New York became one of many states seeking to protect confidential information by enacting the "Security and Notification Act." The act requires businesses and state agencies, upon discovery or notification of a security breach in their computer systems, to notify any New York resident whose personal information has been acquired, or is reasonably believed to have been acquired, without authorization. The Act applies to private information (such as social security numbers, driver's license numbers or credit card account numbers) which are obtained by others without authorization.
This new law requires prompt notification to those affected and contains substantial penalties for failure to do so.
This Jones Day article provides a detailed summary of this new law along with some recommendations and steps that employers should begin taking now in order to be in compliance. The law will become effective early December, 2005.