Question 137 - CIPP-US discussion

In the U.S., it is a best practice and, in some states, a requirement to conduct a data protection impact assessment (DPIA) or similar evaluation when technology is used to monitor employees. This practice aligns with privacy principles aimed at ensuring that monitoring practices are proportionate, necessary, and lawful, while minimizing potential harm to employees' privacy.

Why Conduct a DPIA When Monitoring Employees?

Employee Privacy Risks: Monitoring technologies, such as video surveillance, keystroke logging, or location tracking, can significantly impact employees' privacy. Assessments help evaluate these risks and ensure compliance with applicable privacy laws.

State-Specific Requirements: Some states, like California under the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA), require businesses to implement privacy safeguards, including assessments for high-risk activities involving sensitive data.

Best Practices: Even when not legally required, conducting a DPIA demonstrates accountability and helps mitigate risks associated with employee privacy violations.

Explanation of Options:

A. When a background check is used as part of the hiring process: While background checks involve sensitive data and compliance with laws like the Fair Credit Reporting Act (FCRA), a DPIA is not typically required for this process. Instead, consent and notice are emphasized.

B. When any information is processed by a corporation: This is too broad. DPIAs are generally reserved for high-risk activities involving sensitive data or technologies, not for all data processing activities.

C. When trade secrets are shared with a third party: Sharing trade secrets involves contractual and confidentiality measures, but it does not usually necessitate a data protection assessment unless personal data is also involved.

D. When technology is used to monitor employees: This is correct. Monitoring employees with technology poses significant privacy risks, making it a best practice (and sometimes a requirement) to assess the impacts on privacy and ensure compliance with state and federal laws.

Reference from CIPP/US Materials:

California Privacy Rights Act (CPRA): Introduces risk assessments for certain data processing activities.

IAPP CIPP/US Certification Textbook: Discusses privacy risks associated with employee monitoring and the importance of impact assessments.