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Posts Tagged ‘#Target’

Cyberrisks to Contractors and Securing Proper Coverage

Posted on: June 29th, 2018

By: Barry Brownstein

Increasingly sophisticated hackers have targeted personal and business data held by companies like Target Corp., Sony Corp., Equifax Inc. and Yahoo Inc. during the past decade. The construction industry is just as susceptible to these risks as any other industry.  As construction projects increase in size and there is more sharing of data related to buildings and projects, and as more of that sharing becomes electronic, cyberrisks increase as well.

Contractors and their business partners hold personal information about their clients and employees, and they are increasingly using more electronic means to exchange data and survey construction projects. A significant threat for companies in the construction industry comes from the open and increasingly connected network between those in charge of a project and their various subcontractors and business partners, who need swift and seamless access to plans and other sensitive data to do their part of the work.

Many companies in the construction industry assume that since they have policies that cover losses stemming from physical and property damage, any infiltration into their systems that result in the loss of access to sensitive information is covered by such insurance.  However, most commercial general liability policies carve out cyberthreats from coverage.  While contractors can still make claims under more traditional policies and may find that some of their losses are covered, relying solely on these protections may be dangerous and result in uncovered losses.

Specialized cyberinsurance can fill in the gaps left by commercial general liability policies that do not account for losses caused by damage to virtual information systems, and ensure that any damages, injuries or delay caused by downstream contractors or business partners are covered as well. Once policies are in place, contractors need to revisit them regularly to account for changes in the cyberthreat landscape as they relate to the construction industry.

If you have any questions or would like more information, please contact Barry Brownstein at [email protected].

MasterCard and Target’s Settlement Agreement Falls Through

Posted on: June 4th, 2015

By: Dave Cole

The proposed $19 million settlement between MasterCard and Target over the 2013 data breach has fallen through after not enough banks accepted the deal. Under the settlement announced last month, Target agreed to set aside $19 million for banks and credit unions that had issued MasterCards that were affected by breach. Banks and credit unions that accepted the deal would have been able to use the money to cover operating costs and fraud-related losses stemming from the breach. But the settlement needed 90% of the card issuers to accept the offer by May 20 in order for it to go into effect.

Both MasterCard and Target confirmed this week that not enough banks and credit unions accepted the offer by the deadline, thereby voiding the settlement. This means that MasterCard-issuing banks and credit unions no longer have the option to accept a portion of the proposed $19 million settlement pool to settle their claims against Target. As a result, all of their claims continue to be the subject of the consolidated class action pending in federal court in Minnesota. It is not known right now whether Target and MasterCard will go back to the drawing board to craft a new settlement, or if Target will abandon its attempt to obtain a private settlement and instead try to resolve the MasterCard claims through the pending federal court lawsuit.

 

 

 

New York AG Targets Rise of “On-Call” Retail Employees

Posted on: April 15th, 2015

By: Amanda M. Cash

New York’s Attorney General, Eric T. Schneiderman, recently launched an inquiry into 13 major retailers, including Gap, Abercrombie & Fitch, J. Crew Group, L. Brands, Burlington Coat Factory, TJX Companies, Urban Outfitters, Target, Sears, Williams Sonoma, Crocs, Ann Inc. and J.C. Penney.

The Attorney General sent letters to these retailers questioning a practice where retailers keep workers “on call” for shifts.  According to the Attorney General, these “on-call” shifts require employees to report by phone, text, or email prior to their shift.  Hourly employees sometimes will not find out until the night before or the morning of the shift whether they will actually work a shift.

Employers prefer these types of “on-call” shifts as it helps retailers staff their shifts based on store traffic forecasts.  Of course, for employees, it causes difficulties in planning for things such as childcare or school schedules.  Reportedly, JCPenny, Ann Inc., and Sears Holding have denied utilizing “on-call” scheduling, while it is unclear whether the other retailers have utilized such “on-call” scheduling.

The New York Attorney General is targeting this “on call” practice based on a New York state law that requires employers to pay hourly workers who report for a scheduled shift for at least 4 hours of work.  The emails, texts, and phone calls are being interpreted by the New York Attorney General as “reporting” for a scheduled shift.

These 13 retailers now have until May 4 to provide the New York Attorney General with information regarding the processes they follow to schedule on-call shifts, such as whether they use computerized systems and penalize employees who do not follow on-call procedures.  He also asked the companies for any analysis they might have conducted on cost savings associated with on-call shifts and the impact on workers’ wellbeing. We will keep you updated with any new developments on this story.