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Wall Street Takes On State Employee Laws

EMPLOYEE PRIVACY—U.S.

April 23, 2013

The Wall Street Journal reports on an “unlikely alliance of regulators and industry groups” seeking to “carve out exemptions” in a slew of proposed state laws barring employers from accessing the social media accounts of employees or applicants. The Financial Industry Regulatory Authority (FINRA) has stated that financial institutions need an avenue to check “red flags” on personal account misuse. The proposed state laws, FINRA argues, could put investors at risk, the report states. FINRA has reached out to lawmakers in approximately 10 states, asking them to include changes to proposed employee privacy legislation. California lawmakers—in whose state the employee privacy law has already gone into effect—“rebuffed requests” by FINRA and other industry groups to include exemptions. Wisconsin is currently considering similar employee legislation. (Registration may be required to access this story.)
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