Is Your Business Ready for New York’s SHIELD Act?

Cybersecurity is now part of doing business in New York. 

If your company handles personal data from New York residents, you’re legally required to safeguard that information under the SHIELD Act. It doesn’t matter whether your office is in Brooklyn or Boise. If you're doing business with New Yorkers, you're expected to step up.

Our commercial litigation attorneys at Horn Wright, LLP, help business owners across the state take the guesswork out of SHIELD Act compliance. From assessing risk to building strong security policies, we provide clear legal guidance tailored to your operation. 

Whether you're managing sensitive customer information or facing issues like breach of contract claims, our legal team is ready to offer reliable representation.

Protecting New Yorkers' Data Isn't Optional, It's the Law

The SHIELD Act (Stop Hacks and Improve Electronic Data Security Act) was passed to ensure companies do their part to protect personal data.

Here’s what makes this law different:

• It doesn’t matter where your business is located: If you collect data from a New York resident, you’re responsible. Even out-of-state companies must comply.
• It protects more than just the basics: The SHIELD Act covers biometric info, login credentials, and account data. Here’s what the law defines as “private information.”
• It requires proactive safeguards: Your business must implement security programs and training. 

The SHIELD Act breaks security into three areas:

1. Administrative Safeguards – Train staff. Assign data security duties. Identify and address risks.
2. Technical Safeguards – Encrypt data. Monitor systems. Secure software.
3. Physical Safeguards – Restrict access to paper records. Store sensitive files securely.

You decide what’s “reasonable” based on your business size and exposure, but doing nothing isn’t an option.

Steps to Stay SHIELD-Compliant

Compliance takes planning, action, and ongoing effort. Here’s where to start:

1. Know What You’re Collecting

Review what data you collect - emails, Social Security numbers, payment details - and where it’s stored. IBM found it takes 204 days on average to detect a breach.

2. Identify Vulnerabilities

Assess what systems or areas could be exploited and who has access to sensitive data.

3. Build a WISP

Create a Written Information Security Program. Document your policies, assign responsibilities, and detail breach response steps.

4. Educate Your Team

Train employees on security practices, from handling sensitive data to spotting phishing attempts.

5. Keep It Current

Update your security plan as your tech, team, or operations change.

6. Track Your Efforts

Maintain records of your training, audits, and updates. Documentation supports your compliance.

7. Have a Response Plan

If a breach occurs, respond quickly. Notify affected individuals within 72 hours. Offer help when needed.

Real Cases That Show Why Compliance Matters

EyeMed Vision Care

A hacked email account exposed info from over 2 million people, including nearly 100,000 New Yorkers. The result: a $600,000 settlement.

Practicefirst (Buffalo, NY)

Ransomware affected over 1.2 million patient records. The settlement? $550,000.

Wegmans

No confirmed breach, but a cloud misconfiguration led to exposed customer data. See more.

Key Takeaways

• Negligence matters: Poor practices can lead to enforcement, even without a hack.
• Act quickly: Delay in notification can raise penalties.
• No one’s exempt: Big or small, every business has responsibilities.
• Cloud risk is real: Misconfigured storage is a common, and avoidable, problem.

If compliance issues evolve into complex disputes, a skilled business dispute resolution lawyer can help protect your interests.

Protect Your Business with Help from Horn Wright, LLP

You don’t have to face compliance challenges without support. Our commercial litigation lawyers at Horn Wright, LLP, help local businesses develop clear, sustainable compliance strategies. 

Whether you're managing sensitive data or responding to enforcement inquiries, one of the best law firms in America is here to assist you. Our skilled New York attorneys bring both legal insight and practical strategy to every case.

Reach out today to schedule your FREE, no-obligation consultation. We’ll help you stay compliant and stay protected.