Can companies be held liable for data breaches caused by their employees?
Yes, companies can be held liable for data breaches caused by their employees under California’s cybersecurity law. The law requires companies to take “reasonable steps” to protect confidential information, which includes employee, customer, or contractor data. Companies must also notify any individuals affected by a data breach. If a company fails to take reasonable steps to protect data and fails to notify those affected, they can be held liable. In this case, companies may be held liable for the negligent actions of their employees if they were not adequately trained or supervised, or if they were not given the proper tools to guard against potential threats. Additionally, if it is determined that the company failed to act on a known or potential threat, they can be held liable for any data breaches caused by their employees. However, companies are not necessarily always liable in cases of employee data breaches; it depends on the given situation and the actions taken by the company.
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