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Ohio Employers’ Obligations to Employees in the Event of a Data Breach

03.10.25 written by

Introduction

With the increasing reliance on digital systems, data breaches have become a growing concern for businesses, including those in Ohio. Employers who collect, store, or process employee data have legal obligations to protect that information and respond appropriately in the event of a breach. This article outlines Ohio employers’ responsibilities regarding employee data breaches, including notification requirements, potential legal liabilities, and best practices for compliance.

Legal Framework Governing Data Breaches in Ohio

Ohio does not have a standalone data privacy law similar to the California Consumer Privacy Act (CCPA), but employers must comply with the Ohio Data Protection Act (ODPA) and Ohio’s Data Breach Notification Law (Ohio Rev. Code § 1349.19). Additionally, depending on the nature of the breach, federal laws such as the Health Insurance Portability and Accountability Act (HIPAA) and the Fair Credit Reporting Act (FCRA) may also apply.

Obligations Under Ohio Law

  1. Employee Notification Requirements
  • Under Ohio law, if an employer experiences a data breach involving employees’ personal information, they must provide timely notification (not later than 45 days following its discovery) to affected employees.
  • “Personal information” includes an employee’s name in combination with sensitive data such as Social Security numbers, driver’s license numbers, or financial account details.
  • Notification must occur without unreasonable delay and should include details of the breach, the type of information exposed, and any steps the employer is taking to mitigate the risks.
  1. Notification to the Ohio Attorney General
  • If a breach affects more than 1,000 Ohio residents, the employer must also notify the Ohio Attorney General and consumer reporting agencies (e.g., Equifax, Experian, and TransUnion).
  1. Data Security Standards and Safe Harbor Protections
  • The Ohio Data Protection Act (ODPA) provides a safe harbor for businesses that adopt reasonable cybersecurity measures.
  • Employers who implement an industry-recognized cybersecurity framework (e.g., NIST, ISO 27001) may have protection against lawsuits arising from a data breach.
  1. Federal Compliance Considerations
  • HIPAA: If an employer provides health benefits and a breach affects protected health information (PHI), the employer must comply with HIPAA’s Breach Notification Rule, which includes notifying affected individuals, the U.S. Department of Health and Human Services (HHS), and possibly the media.
  • FCRA: If background check information is compromised, the FCRA may require additional disclosures.

Potential Legal Consequences

Failure to comply with Ohio’s data breach laws can lead to:

  • Regulatory penalties
  • Civil lawsuits from employees whose data was compromised
  • Reputational damage and loss of employee trust

Additionally, Ohio employees may pursue legal claims such as negligence or breach of contract if their employer failed to implement adequate cybersecurity protections.

Best Practices for Ohio Employers

To minimize legal risk and protect employee data, Ohio employers should:

  • Implement a Strong Cybersecurity Policy: Follow industry-standard security frameworks to protect sensitive employee information.
  • Adopt an Incident Response Plan: Establish clear procedures for detecting, responding to, and recovering from data breaches.
  • Train Employees on Data Security: Educate staff about cybersecurity risks and proper handling of sensitive data.
  • Consider Cyber Liability Insurance: Insurance can help cover costs related to data breach investigations, notifications, and legal defense.
  • Regularly Review and Update Security Measures: Conduct audits to ensure compliance with evolving cybersecurity standards.

Conclusion

Ohio employers have a legal and ethical duty to protect employee data. In the event of a breach, they must act swiftly to notify affected employees, comply with state and federal laws, and implement security measures to prevent future incidents. By proactively addressing cybersecurity risks, employers can reduce legal exposure and maintain employee trust.

Written by:
Scott M. Zurakowski
Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A.
330-497-0700
szurakowski@kwgd.com

 

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