On August 1, Illinois became the second state in the country to prohibit employers from requesting or requiring employees to provide their passwords for social networking accounts.  As reported in this blog, Maryland adopted similar legislation in April.  The bill (HB 3782) was signed into law by Illinois Governor Pat Quinn and will become effective on January 1, 2013. 

The legislation amends the Illinois Right to Privacy in the Workplace Act to make unlawful an employer’s request or requirement that an employee or prospective employee provide “any password or other related account information in order to gain access to the employee’s or prospective employee’s account or profile on a social networking website….”  The term “social networking website” means an Internet-based service that allows individuals to (1) construct a public or semi-public profile within a bounded system, created by the service; (2) create a list of other users with whom they share a connection within the system; and (3) view and navigate their list of connections and those made by others within the system.  The legislation makes clear that emails are not included in the term “social networking website.” 

Legislation to prohibit employer access to employee social networking information currently is being considered in several states, including Washington, New Jersey, California, and Colorado.

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Photo of Mike Nonaka Mike Nonaka

Michael Nonaka is co-chair of the Financial Services Group and advises banks, financial services providers, fintech companies, and commercial companies on a broad range of compliance, enforcement, transactional, and legislative matters.

He specializes in providing advice relating to federal and state licensing and…

Michael Nonaka is co-chair of the Financial Services Group and advises banks, financial services providers, fintech companies, and commercial companies on a broad range of compliance, enforcement, transactional, and legislative matters.

He specializes in providing advice relating to federal and state licensing and applications matters for banks and other financial institutions, the development of partnerships and platforms to provide innovative financial products and services, and a broad range of compliance areas such as anti-money laundering, financial privacy, cybersecurity, and consumer protection. He also works closely with banks and their directors and senior leadership teams on sensitive supervisory and strategic matters.

Mike plays an active role in the firm’s Fintech Initiative and works with a number of banks, lending companies, money transmitters, payments firms, technology companies, and service providers on innovative technologies such as bitcoin and other cryptocurrencies, blockchain, big data, cloud computing, same day payments, and online lending. He has assisted numerous banks and fintech companies with the launch of innovative deposit and loan products, technology services, and cryptocurrency-related products and services.

Mike has advised a number of clients on compliance with TILA, ECOA, TISA, HMDA, FCRA, EFTA, GLBA, FDCPA, CRA, BSA, USA PATRIOT Act, FTC Act, Reg. K, Reg. O, Reg. W, Reg. Y, state money transmitter laws, state licensed lender laws, state unclaimed property laws, state prepaid access laws, and other federal and state laws and regulations.