In an important development for U.S. companies that operate within the nations of the European Union (EU), U.S. and EU negotiators have reached an agreement in principle on a new framework to govern cross-border data transfers that the two sides hope will facilitate compliance with the EU’s strict privacy laws. As explained in more detail below, it likely will be many months before key details are hashed out and perhaps even years before the new agreement is fully tested in court. Nevertheless, the agreement on a new framework is an important step forward on a vexing issue that has put the United States and the EU at odds for many years, and if ultimately adopted, will create a path for the cross-border transfer of sensitive personal data – including HR data – without fear of harsh penalties for failing to meet EU privacy requirements.
Members of the Center for Workplace Compliance (CWC) can read more here.