Category: Privacy and Data Security

Governor Christie Signs Legislation Protecting Social Networking Accounts of Employees

On August 29, 2013, Governor Chris Christie signed a bill that prohibits most employers from requiring employees or prospective employees to disclose user names and passwords for social networking accounts like Facebook, Twitter and LinkedIn. The new law, which goes into effect December 1, 2013, makes New Jersey the 13th state to enact legislation protecting the social networking accounts of employees. The Gibbons Employment Law Alert previously covered the proposed bill before it became law.

A New Jersey Federal Court Holds that the Stored Communications Act Applies to “Wall Posts” on Facebook

The Federal Stored Communications Act, 18 U.S.C. § 2701, et seq. (“SCA”), makes it unlawful to, among other things, “intentionally access[] without authorization a facility through which an electronic communication service is provided.” Violators are subject to imprisonment and fines, and the statute expressly authorizes a civil action for damages, injunctive relief and attorneys fees. A federal court in New Jersey has now held that the statute may apply to those who access information posted by a Facebook account holder on his or her Facebook “wall.” The defendant-employer in the case, Monmouth-Ocean Hospital Service Corp. (“MONOC”), was able to avoid liability under the SCA because the plaintiff could not establish that her employer violated the “without authorization” component of the statute. Ehling v. Monmouth-Ocean Hospital Service Corp. But the case puts employers on notice that they must tread carefully in this area.

Gov. Christie Issues Conditional Veto of Social Networking Privacy Bill

On Monday, May 5, 2013, New Jersey Governor Chris Christie issued a conditional veto of Assembly Bill No. 2878, the controversial piece of proposed legislation that sought to bar most employers from requiring current or prospective employees to provide user names or passwords to social networking accounts and from inquiring as to whether current or prospective employees even had social networking accounts.

Taking Over Former Employee’s LinkedIn Account Not a Violation of Federal Law, According to Pennsylvania District Court

A Pennsylvania Federal District Court has decided that an employer did not violate the Federal Computer Fraud and Abuse Act (“CFAA”) or the Federal Lanham Act, when it took control of a departed employee’s LinkedIn account. The Court ruled that (1) the CFAA, which in part prohibits unauthorized access to a computer with the intent to defraud, did not come into play and (2) no trademark infringement in violation of the Lanham Act had occurred.

Gibbons Institute Program – Cybersecurity Insurance and Cybersecurity Risk Management

On June 6, the Gibbons Institute of Law, Science & Technology, along with Seton Hall University School of Law, will host a timely and informative program, “Cybersecurity Insurance and Cybersecurity Risk Management.” The evening features two expert panels who will examine the developing cyber-risk insurance market. Panelists will address the potential legal liability for businesses victimized by cyber crimes, as well as the availability and scope of coverage for cyber-risk insurance policies.

Risky Business: Cybercrime in the New Economy

Cybercrime has increased tremendously in the digital economy. “According to the American Society for Industrial Security, American businesses [are] losing $250 billion a year from intellectual property theft since the mid-1990’s.” There is a clear and growing threat of Chinese industrial espionage targeted at American companies. In a recent case, a Michigan couple was accused of stealing $40 million worth of trade secrets from General Motors and selling them to a Chinese car maker. Aside from hackers, the threat also exists within organizations from insiders. A recent study commissioned by Cisco found that “[i]n the hands of uninformed, careless, or disgruntled employees, every device that accesses the network or stores data is a potential risk to intellectual property or sensitive customer data.”

Current Cybersecurity Issues and Laws Effecting Private Sector Industries Discussed at the Fifth Annual Gibbons E-Discovery Conference

On the heels of National Cybersecurity Awareness Month in October, the second panel discussion at the Fifth Annual Gibbons E-Discovery Conference dealt with pressing issues involving cybersecurity and their effect on private industries. Moderated by Gibbons Director and senior E-Discovery Task Force member Jeffrey L. Nagel, Esq., the panel opened with a presentation by Erez Lieberman, Esq., Deputy Chief of the Economic Crimes Unit and Chief of the Computer Hacking and Intellectual Property Section, Office of the United States Attorney, District of New Jersey. Mr. Lieberman discussed several cases of high profile cybersecurity breaches in recent years and the government’s role in those cases. Mr. Lieberman identified the various types of cybercrimes affecting businesses and provided the audience with a unique understanding of the interaction and coordination between his office, the Secret Service, the Federal Bureau of Investigations, and private companies. Mr. Lieberman also addressed the effect of data breaches on the public sector and the impact of public perception on the business.

Recent New Jersey Law Division Decision Highlights Importance of Making Government Records Requests Under Both OPRA and the Common Law

The right of public access to information about sexual harassment claims brought against a public entity is the focus of a recent decision of the Superior Court of New Jersey, Law Division (Atlantic County). The decision illustrates the interplay between the common law right of access to government records and the New Jersey Open Public Records Act (“OPRA”), as well as the importance of making a request for a government record under both.

Thunderstorms on the Horizon for Cloud Computing

With the U.S. economy still reeling from the aftershock of what is now known as the “Great Recession,” companies large and small are evaluating cloud computing as a means of reducing IT costs. The National Institute of Standards and Technologies (“NIST”) and the Cloud Security Alliance have defined cloud computing as a model for on-demand network access to a shared pool of computing resources over the internet, namely software applications, data servers, networks and other services. Just as businesses and consumers now pay for gas, electricity and other utilities, cloud enthusiasts predict that the cloud will be sold on demand as a pure IT service.