New Law Affects All Businesses in Alabama

Wooden gavel on wooden table, on background

Business owners be aware – the state of Alabama recently passed a law that will require any person or entity conducting business to safeguard personal information belonging to customers, clients and employees. The Alabama Data Breach Notification Act of 2018 went into effect on June 1, 2018. “Sensitive personally identifying information includes an Alabama resident’s first name or first initial and last name in combination with any of the following:

  • Non-truncated Social Security or tax-identification number;
  • Non-truncated driver’s license, passport, or other government identification number,
  • Financial account number combined with security/access code, password, PIN, or expiration date necessary to access or enter into a transaction that will “credit or debit” the account;”
  • Username or email addresses in combination with a password or security question and answer that would permit access to an online account likely to contain sensitive personally identifying information; and
  • Health information, such as an individual’s medical condition, patient history, and health insurance identification numbers.”

A business must notify affected Alabama residents of a breach of security if two conditions are met: “(1) sensitive personally identifying information has been or is reasonably believed to have been acquired by an unauthorized individual, and (2) substantial harm to affected individuals is “reasonably likely” to result. Notice must be given to the individual(s) affected no later than 45 days after determining that a breach has or is reasonably believed to have occurred. If the breach involves more than 1,000 individuals, the business must also notify the Alabama Attorney General.”

To read more information and parameters of the law, go here. To read the complete Alabama Data Breach Notification Act of 2018, go here.

Source: Lexology

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