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Are Your Recordkeeping Practices Exposing Employees to Identity Theft?

09/02/08

In more than 20 states, employers have a legal obligation to protect their employees from identity theft. Specifically, this involves restrictions to ensure the safety and security of employees’ Social Security numbers.

Employers cannot post or publicly display Social Security numbers (on a bulletin board or company memo, for example), print them on ID badges or paychecks, or require employees to use them as passwords.

States which provide extra protection for employee Social Security records are:

Alaska, Arizona, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Illinois, Maryland, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Utah and Virginia.

Consider your company's recordkeeping practices. When not handled properly, personnel records can leave employees vulnerable to identity theft.

  • Ensure the confidentiality of social security numbers and other sensitive employee information with careful recordkeeping practices.
  • Make sure only those people who need access to private data have access.
  • Consider storing protected data like Social Security numbers, medical information and other data not essential for daily functions in separate, locked filing cabinets or in encrypted databases.
  • Establish and train employees in a clear procedure for handling, releasing and storing sensitive information. Make sure they understand the importance of returning private data to a secure file as soon as its been used. Make sure private data is never left on desks while employees leave to attend to other tasks, go to lunch, or leave for the day.
  • Establish a procedure to deal with data leaks
  • Select products that protect your employees' data, like an encrypted personnel software package or even just a Confidential Employee Record Folder with a Concealed Cover ideal for keeping private information away from prying eyes.