How will the California Privacy Rights Act (CPRA) affect small businesses, and can a PEO provide assistance?
The California Privacy Rights Act (CPRA) will have several impacts on small businesses:
1. **Increased Compliance Requirements**: Small businesses will need to ensure they comply with stricter data privacy regulations, including conducting risk assessments, implementing data protection measures, and maintaining detailed records of data processing activities: 10 Big Impacts on Your Business](https://risk3sixty.com/blog/california-privacy-rights-act-cpra-impacts-on-your-business).
2. **Expanded Data Rights for Consumers**: The CPRA grants consumers additional rights, such as the right to correct inaccurate personal information, the right to limit the use of sensitive personal information and the right to opt-out of data sharing for cross-context behavioral advertising. Small businesses will need to update their privacy policies and procedures to accommodate these new rights.
3. **Third-Party Contractual Obligations**: Small businesses that work with third-party vendors or contractors will need to ensure that their contracts include specific provisions related to data protection and privacy, such as limiting the use of data to specified purposes and including a right to audit clause: 10 Big Impacts on Your Business] (https://risk3sixty.com/blog/california-privacy-rights-act-cpra-impacts-on-your-business).
4. **Potential Penalties**: Non-compliance with the CPRA can result in significant fines and penalties, which can be particularly burdensome for small businesses.
A Professional Employer Organization (PEO) can help small businesses navigate these challenges by providing expertise in employment laws and compliance, offering administrative support, and implementing necessary updates to policies and procedures. Small businesses can focus on their core operations by partnering with a PEO while ensuring they remain compliant with the CPRA.