New York Introduces New Data Protection Legislation

Citing a sixty percent increase in data breach notifications from 2015 to 2016, New York Attorney General Eric Schneiderman recently introduced the Stop Hacks and Improve Data Electronic Security Act (SHIELD) bill.  The legislation would require companies that handle sensitive date of New York residents to adopt "reasonable administrative, technical and physical protections for data."

The proposed legislation would impose penalties of up to $5,000 per violation or $20 per each instance of failed notification, up to a maximum of $250,000.   Small businesses would have less rigorous requirements, and there is a proposed safe harbor for employers of all sizes who obtain independent certification that their data protection measures meet the highest standards.