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Small businesses, be aware: you’re not exempt from the California Consumer Privacy Act (CCPA). \nNote:\n This article is meant to be informational only. It’s not a legal document and doesn’t provide legal advice. Solo assumes no legal liability that may arise from the use of this article. If you have questions about your legal obligations, you should consult your legal counsel.\nSigned into law in 2018, the CCPA went into effect as of January 1, 2020, when all California businesses have to be in compliance. Broadly speaking, that means that your business has to be prepared to comply with a new set of rules for acquiring, storing, accessing, erasing, and passing along consumer data. Failure to comply comes with big financial penalties.\nCCPA compliance might seem like it’s only for big businesses or technology companies swimming in data. But in fact, small, local businesses like restaurants, retailers, auto shops, salons, and professional service providers may be liable under CCPA, as well. \nEvery business that accepts card payments already has to be \nPCI compliant\n. Now, you may have to be CCPA compliant, too. (See below to see if CCPA applies to your business.)\nWe know it’s difficult to make sense of complex new laws, and nobody wants the hassle and financial burden of a misstep. So, we prepared a list of 8 things every small business should know about CCPA compliance. \nWhat is the California Consumer Privacy Act (CCPA) in a nutshell?\nThe California Consumer Privacy Act (CCPA) gives California consumers new privacy rights and creates new obligations for businesses that are covered by the law. These rights include:\nThe right to know what personal information a business is collecting and how that information is being used and shared; \nThe right to a copy of the personal information a business holds about a consumer;\nThe right to delete personal information a business holds about a consumer; \nThe right to stop the sale of personal information by a business; and\nThe right to have equal service and price, even if a consumer exercises their privacy rights.\nNote that many of these terms such as “sale,” “personal information,” and “business” have unique definitions under the CCPA.\nWhat is considered “personal information?”\nPersonal information is anything that identifies or could be reasonably linked (directly or indirectly) with a particular individual or household. \nThis includes things like names, physical addresses, unique identifiers (such as cookies), email addresses, IP addresses, commercial information (such as transaction data), financial information, biometric information, internet or device activity (such as browsing history), geolocation data, and any other information that can be connected to a particular individual.\nDoes it count as “personal information” if I only have my customer’s email address?\nYes. Email addresses are explicitly included in the law’s definition of personal information.\nDoes credit card data count as “personal data”?\nYes. Credit card numbers are also explicitly included in the law’s definition of personal information.\nHow do I know if my business has to comply with the CCPA?\nGenerally, the CCPA applies to you if:\nYou “do business” in the state of California; \nYou collect personal information from California residents or have data collected on your behalf; \nYou make decisions regarding how that data is collected, used, or shared; \nand\nYou satisfy at least one of three conditions: \nyou make over $25M in annual gross revenue;\nyou collect, buy, or share data from over 50,000 California residents annually; \nor\nyou make 50% or more of your annual revenue selling personal information. \nIf I have information saved about 49,000 customers, then the CCPA doesn’t apply to me. Is that right?\nAssuming that you don’t meet either of the other two thresholds related to revenue and data selling, the CCPA will likely not apply to you. But keep in mind that under the CCPA, personal information is anything that could be linked to a particular person, including IP addresses and unique identifiers, so exceeding the 50,000 threshold is easier than you might think.  \nAlso, if you collect personal information from 49,000 California customers, there is a good chance that you will exceed the threshold in the near future, so you should be prepared to comply.\nMy business doesn’t operate in California, but what if I’m collecting information from a California resident — must I be in compliance then?\nYou don’t have to have a physical presence in California; you just need to be “doing business in California” (and meet the other requirements described above). “Doing business in California” isn’t defined in the CCPA and the AG hasn’t provided any guidance on this issue yet.  \nHowever, you’re likely “doing business” in California if you regularly offer goods or services to people in California, make a substantial number of sales in California, or otherwise purposefully derive a benefit from your activities in California. If you have questions about whether you’re “doing business” in California, please consult your legal counsel.\nWhat if I use a POS system that automatically collects information, but I don’t own or manage that information — am I on the hook, or is the processor and/or data company?\nIf your POS (point of sale system) provider collects personal information directly from your customers, you don’t make any decisions about how that information is used or shared (either alone or jointly with your provider), and your provider doesn’t share that information with you, you may not have CCPA obligations as to that information.\nIf I don’t meet any of the above requirements, do I still need to worry about the CCPA?\nYou may have obligations even if you don’t meet the requirements described above. For example, if you provide services to a CCPA-covered business and the business gives you personal information, the business may require you to agree to limit your ability to use data for other purposes and to assist with deletion requests.  \nIn addition, if you purchase personal information about consumers from a CCPA-covered entity, the CCPA may limit your ability to resell the information without providing notice and the opportunity to opt-out to those consumers. If you have questions, you should reach out to legal counsel for assistance. \nIn addition, if you purchase personal information about consumers from a CCPA-covered entity, the CCPA may limit your ability to resell the information without providing notice and the opportunity to opt-out to those consumers. If you have questions, you should reach out to legal counsel for assistance. \nWhat does “selling consumers’ personal information” entail? And how do I know if I’m doing that or not?\nThe CCPA defines “selling” as sharing personal information with another entity in return for “monetary or other valuable consideration.”  \nThis means that you don’t have to receive money in return for the information; receiving a non-monetary benefit can be sufficient to make the data transfer a “sale.” So if you’re giving someone personal information in exchange for money or another set of personal information, or getting some other benefit in return, you may be “selling.”\nThe CCPA has a number of exceptions to “sales,” such as:\nWhere the customer directs you to share personal information with the other entity, or uses your business to intentionally interact with that entity, so long as that entity doesn’t sell the information.\nWhere you share personal information with a service provider with which you have a written contract. That contract must prohibit the service provider from using the information for any other purpose other than providing services to you.\nI definitely don’t sell my consumers’ information, but I’m concerned the product or POS I use may make money from that info — would the CCPA’s requirements regarding “selling” information still pertain to me? Or does my business need to the one actually receiving money in exchange for customer information?\nAgain, you don’t necessarily have to receive money for personal information in order for the transfer to be a “sale” — receiving some benefit for the information may be enough. But if your provider is the one that is deciding whether to share the information and receiving the money or other benefit in return, it is unlikely that you would be considered to be “selling” personal information.\nWhat are some types of businesses that are most likely to be impacted by the CCPA?\nThe CCPA covers any type of business that collects personal information, including offline businesses, but it will be more likely to affect consumer-facing companies that do business online. \nIf my business is required to comply, what steps should I take?\nThe main steps you should take are:\nUpdate your privacy policy to disclose the categories of personal information you collect and how you use and share them, and to describe consumers’ privacy rights under the CCPA.\nCreate a process for honoring a consumer’s rights to obtain a summary of personal information you collect, to obtain a copy of the consumer’s personal information that you hold, and to delete that information.\nCreate a process for honoring a consumer’s right to opt out of the sale of their personal information, if necessary.\nReview your contracts with vendors that receive personal information and update them with service provider provisions, if necessary.\nEnsure you’ve implemented reasonable security measures to protect consumers’ personal information.\nTrain your employees on CCPA compliance.\nThe California Attorney General has created a webpage with more information about the CCPA. You can learn more about the rulemaking process and read the regulations on the California Attorney General’s Website here: \nhttps://oag.ca.gov/privacy/ccpa\n.\nWhat might happen to me if I’m out of compliance?\nGenerally, the California Attorney General’s Office is responsible for enforcing the CCPA. After the Attorney General’s Office notifies you of the violation, you should have 30 days to attempt to fix the issue. If you’re still out of compliance after 30 days or the AG determines that you cannot adequately fix an issue, then you could receive a fine from $2,500 to $7,500 \nfor each violation\n.\nThe one exception to this relates to data breaches. If you fail to implement reasonable security measures and experience a breach of personal information, you can be sued by private plaintiffs. If the suit is successful, you can be required to pay $100 to $750 per consumer per incident, or the plaintiffs’ actual damages, whichever is greater.\nWhere can I go to find someone who can help me make sure I’m doing all of the above requirements?\nThe CCPA is a complex law that has a number of ambiguities. Because of this, you should consult your lawyer about how you can comply. If you don’t have an attorney already, you can get referrals from your local bar association or any trade association to which you belong.\nNote:\n This article is meant to be informational only. It’s not a legal document and doesn’t provide legal advice. Solo assumes no legal liability that may arise from the use of this article. If you have questions about your legal obligations, you should consult your legal counsel.\n


CCPA compliance: 8 things every small business should know

In this article:\nWhat is an independent contractor agreement?\nWhat is the purpose of an independent contractor agreement?\nDo you need an independent contractor agreement, and w\nhat should be included?\nCan you negotiate the terms of an agreement?\nHow often should an independent contractor agreement be renewed?\nWhere can I find a sample independent contractor agreement?\nFree independent contractor agreement template\nBecoming an independent contractor can be a liberating thing. It allows you the chance to work for yourself, set your own schedules, and spend more time doing the kind of work that you really enjoy. As the gig economy thrives and more people try their hand at \nfreelance or independent contractor\n work, businesses across the country are hiring independent contractors to help supplement areas where they don’t have full-time employees. \nAs an independent contractor, you may be asked to sign an independent contractor agreement by a company that hires you. You may even want to request that each of your clients signs an agreement with you. Throughout this article we’ll discuss the importance of independent contractor agreements, whether or not you need one, and how to get started.  \nWhat is an independent contractor agreement?\nAn independent contractor agreement, also known as a 1099 agreement, is a written agreement between an independent contractor and a client. It generally outlines the terms of the tasks that you’ll perform, including rates, duration of time, and basically the scope of the work that you’ll be doing throughout your time working for your client.\nWhat is the purpose of an independent contractor agreement?\nThe purpose of the agreement is often to have a legal backing for any terms of work that you and your client have agreed upon. This written agreement can help clear confusion over worker classification, your payment terms, taxes, how to resolve disputes, and more. It sets the ground rules for your work with your client. \nIndependent contractor agreements are generally requested by a company that you may work for. This is often to help them cover their responsibilities for taxes and benefits, to protect their intellectual property, and to set other guidelines they feel are necessary for the security of their company. \nAs an independent contractor, you may want to have an agreement ready for your clients that don’t require one—for your own protection. Setting terms in a written agreement holds your clients accountable to those terms and gives you some legal protection if they don’t hold up their end of the deal. \nWho can use a freelancer, gig-worker or contractor agreement?\nAn independent contractor agreement can be used by any contractor, freelancer, consultant, or other type of independent contractor who wants to have a written agreement with their clients. On the other side of that, any company wishing to hire an independent contractor may outline an agreement that must be signed before starting their services. \nDo you need an independent contractor agreement?\nIt is not a legal requirement in most places for independent contractors to have an independent contractor agreement. That being said, it is smart to have some form of written proof of the terms of your work with any of your clients. \nEven if you don’t require your clients to fill out an agreement with you, you may have clients who require you to fill out an agreement to work for them. \nNot having a written agreement can open up grounds for misunderstanding (whether innocent or intentional), and it can save you a lot of time, money, and stress just to have your work outlined in an agreement from the beginning. \nWhat should be included in an independent contractor agreement?\nYour independent contractor agreement may vary from client to client (in fact it probably should if the scope of work varies between each client or project). Whether you are signing an agreement prepared by a client or creating your own agreement, these are some terms that you should include and/or be prepared to sign off on:\nA description of the independent contractor and the client, including legal names, addresses, contact information, and the relationship between the client and contractor (it’s important to state the fact that this will be independent contractor work so that your employment status is properly classified)\nA description of the work that you will be performing—this could be a list of services that you will provide\nThe terms of payment, including your rates (whether hourly, by project, or other terms that apply to your field) and when and how you will be paid\nAn explanation of who will be responsible for expenses (independent contractors generally cover their own expenses, but depending on the project, you may get resources from your client as well)\nA statement that indicates you have all necessary permits, certifications, or licenses to perform the work for which you are being hired\nA statement that you will be responsible for your own state and federal income taxes\nAcknowledgement that as an independent contractor you are not entitled to benefits that your client offers their full-time employees\nA statement that you have liability insurance (if applicable)\nA description of the duration of the agreement (if applicable)\nA description of the circumstances under which the agreement can be terminated\nAn explanation of how disputes will be resolved (mediation, etc.)\nSome agreements may be much more in-depth than this and others may be much simpler depending on the work you are doing and the client it is for. \nHow do you start or request a contractor agreement?\nWhen you are in the interviewing process, applying for a project, or about to start work for a client, you should discuss an independent contractor agreement. This is something that should be completed before you begin the job. \nIf your client hasn’t brought up any kind of agreement of your work for them, then you should ask them about it. Make sure that when you discuss the terms of your work, you get everything approved in a written format. Even having an email agreement is better than just having verbal communication, and can be helpful in the case of a misunderstanding or dispute. \nIf you have a written agreement prepared, send that over to your client to review before agreeing to begin work for them. Likewise, if they send you an agreement, review it and make sure you are comfortable with the terms before signing anything. \nCan you negotiate the terms?\nYou can absolutely negotiate your independent contractor agreement with your client. It’s important to note that some clients, especially larger companies with corporate rules, may not be willing to negotiate or change their terms, though. \nBut you are your own advocate in the job game when you start working for yourself as a contracted hire. Set the terms that you are willing to work for and negotiate your agreements until they are in a place that you are comfortable with. In some cases, it might even mean that you give up some work because you aren’t satisfied with the terms of the agreement. Just know what you are willing to work for and be ready to set those terms with your clients.  \nHow often should an agreement be renewed?\nAn independent contractor agreement can last for a long time, if the terms are set for a longer duration. But even when you are in an agreement for a longer period of time, it can be good to review and renew it periodically. Cases when you might want to renew or change the agreement include:\nWhen your or your client’s information has changed (business name or address)\nWhen you’ve made a change to the scope of work, like adding new services or deliverables that weren’t previously discussed in your agreement\nWhen your terms of payment have changed, like if you’ve updated your rates to stay competitive or changed the method of payment you are receiving\nFree independent contractor agreement template\nAre you ready to get your own independent contractor agreement in place for your next client? There are tons of free templates and sample agreements out there that you can use so you don’t have to reinvent the wheel.\nCheck out these sample independent contractor agreements from eForms:\nSimple Independent Contractor Agreement\nComprehensive Independent Contractor Agreement\n \nFor more in-depth agreement templates by state, profession, or type, visit \neforms.com\n. 

8 articles found in “Legal”

CCPA compliance: 8 things every small business should know

Do you need an independent contractor agreement? (includes free sample template)

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