On July 9, 2008 New York Governor David Paterson signed Bill Number A11751/S83761. The purpose of the bill is to protect consumers and employees against identity theft. This bill will become effective in January, 2009. This bill regulates the internal use of personal identifying information, including social security numbers.

Basically this provision restricts employers from communicating personal identifying information. Personal identifying information has a very broad definition in this bill to include a social security number, home address, telephone number, personal electronic mail address, internet user ID's and passwords, parent's surname prior to marriage, or a drivers license number. The information can not be publicly posted or displayed, visibly printed on an ID badge or card (or time card), placed in a file with unrestricted access, or communicated to the general public. In addition to this, social security numbers may not be used as identification numbers for purposes of occupational licensing.

The bill also lists punitive measures and penalties for any employer who knowingly violates these provisions. This new amendment presumes that an employer's failure to safeguard the personal identifying information of its workforce is equivalent of a knowing public disclosure, even if the information is inadvertently released or stolen.

What does this mean to an employer? Basically, it is reiterating safe practices that hopefully most of you are doing already. Do not print the above identification information on a name badge and do not use a social security number (either all or in part) as a payroll number, especially if it prints on a paycheck or check stub. Be very careful where personal information is stored and who has access to it. If it is stored in an applicant tracking system or in a file cabinet, be sure that there are security measures in place to protect the information. Having a laptop stolen with the information stored in the laptop without any type of password protection or encryption could land your company in a lot of hot water.

This does NOT mean that, if you work with a background screening company, you can not provide this information to that agency in order to conduct a background check on someone prior to making a job offer. The majority of the reputable companies out there have restricted access and strong security to protect the information. Their staff is trained in the sensative nature of these pieces of information. Also, this information is still required when calling in to companies, schools, or licensing boards in order to verify the information listed by your applicant.

New York joins many other states, most recently Connecticut, in trying to combat identity theft. Other states are sure to join, so it’s a good idea to review your company’s policies and procedures to make sure you are doing everything you can to protect your employees’ information.