Why Protecting Employee Data Is a Legal and Ethical Imperative in BC

In today’s digital landscape, protecting employee data is not just a best practice—it’s a legal imperative for employers in British Columbia. With growing concerns around cyberattacks and data misuse, employers must take proactive steps to ensure employee privacy is safeguarded. The Province’s Personal Information Protection Act (PIPA) outlines clear obligations for managing and safeguarding personal information. Recent events, such as the class-action lawsuit filed against Interior Health over a 2009 data breach, underscore the potential consequences of failing to uphold these responsibilities.

Understanding PIPA: Employer Obligations

British Columbia’s Personal Information Protection Act (PIPA) applies to all private sector organizations and outlines the rules for collecting, using, disclosing, and safeguarding personal information, including that of employees. For employers, this includes the following duties:

Obtain Consent: Before collecting, using, or disclosing personal information, employers must obtain the individual’s consent, unless an exception applies.
Limit Collection: Collect only the data necessary for the identified purpose.
Ensure Accuracy: Keep employee data accurate, complete, and up to date.
Safeguard Information: Implement appropriate security measures to protect personal information from unauthorized access, use, or disclosure.
Be Transparent: Inform employees about how their personal information is used and stored.
Provide Access: Provide employees with access to their personal data upon request.

Failure to meet these obligations can result in investigations by the Office of the Information and Privacy Commissioner (OIPC), reputational damage, and in some cases, legal action.

Interior Health Data Breach: A Cautionary Tale

A recent example highlights the long-term risks of failing to prioritize employee data protection. In 2009, Interior Health – a public body governed by the Freedom of Information and Protection of Privacy Act (FOIPPA) – experienced a data breach that compromised the personal information of thousands of former employees. Although the breach occurred over 15 years ago, a class-action lawsuit filed in 2025 alleges that sensitive personal data, including health and employment records, was sold on the dark web.

The plaintiffs claim that Interior Health failed to notify affected employees adequately or take sufficient steps to protect their information. This breach underscores the lasting consequences that inadequate employee privacy protection can have, not only for individuals but also for the credibility and legal standing of an organization.

Best Practices for Protecting Employee Data

To mitigate risks and ensure compliance with PIPA, private sector employers should consider the following best practices:

Conduct Regular Privacy Audits: Assess current data handling practices to identify potential vulnerabilities and ensure compliance with legal obligations.
Implement Robust Security Measures: Utilize up-to-date security software, such as antivirus programs, firewalls, and encrypted servers to protect against unauthorized access.
Develop Clear Privacy Policies: Ensure that your company has documented procedures for handling employee data and that these policies are accessible and understood by staff.
Train Staff on Data Protection: Educate employees on privacy obligations, internal policies and best practices for handling personal information.
Limit Data Collection and Retention: Only collect the information you genuinely need, and have a retention schedule for securely disposing of outdated or unnecessary records.
Have a Breach Response Plan: Establish and rehearse a comprehensive breach response strategy that includes clear employee notification protocols and accurate regulatory reporting timelines.

For additional guidance, the BC government outlines examples of personal information and four steps private sector organizations can take to stay compliant with PIPA and uphold strong data stewardship practices.

Final Thoughts

Protecting employee personal information is a critical responsibility for employers in British Columbia. Compliance with PIPA not only fulfills legal obligations but also fosters trust and integrity within the workplace. The Interior Health data breach serves as a stark reminder of the potential consequences of inadequate data protection. By implementing proactive measures and fostering a culture of privacy, organizations can safeguard their employees’ information and uphold their legal and ethical responsibilities.

Learn More

To understand your responsibilities under the Personal Information Protection Act, visit the official PIPA legislation or speak with an employment law specialist at Spraggs Law.

If You Have Questions, We Can Help

If you’re an employer in British Columbia and have questions about protecting employee data and other business laws and obligations, our Employment Law Specialists at Spraggs Law are here to help. Please don’t hesitate to contact us at 604 359 1618 or online today.

Please note: This article does not contain legal advice. If you would like advice on your specific situation, please contact Spraggs Law.

Why Protecting Employee Data Is a Legal and Ethical Imperative in British Columbia