New York Law Requires Specific Proceduers for Disposing of Information
New York has joined a growing list of states that require employers to use specific procedures to purge employee records of personal identifying information, such as social security numbers. The "Disposal of Personal Records Law" was signed by Governor George Pataki on June 9 and is intended to assist consumers to protect themselves from the growing threat of identity theft. This law does not affect an employer's record retention requirements under state and federal laws, nor the requirements for record retention when there is pending litigation.
Specifically, the law imposes an obligation on New York employers properly to dispose of records containing personal information through one of the following means: shredding, destruction, modification, or other reasonable action to ensure that no unauthorized person will have access to the personal information. This obligation is broader than what employers that are required to do under the federal Fair and Accurate Credit Transactions Act, which applies solely to consumer reports. Emplyment applications, disciplinary notices, and payroll records containing "personal information" are subject to this disposal requirement. In regard to electronic documents, advice from information technology professionals is necessary to ensure that records are destroyed completely
The law imposes a civil penalty of up to $10,000 for non-compliance and provides the New York State Attorney General with broad enforcement powers. As a concession to employers, the law provides an affirmative defense to a complaint alleging a violation of the law, if the employer can establish it used due diligence to properly dispose of such records.
New York has joined a growing list of states that require employers to use specific procedures to purge employee records of personal identifying information, such as social security numbers. The "Disposal of Personal Records Law" was signed by Governor George Pataki on June 9 and is intended to assist consumers to protect themselves from the growing threat of identity theft. This law does not affect an employer's record retention requirements under state and federal laws, nor the requirements for record retention when there is pending litigation.
Specifically, the law imposes an obligation on New York employers properly to dispose of records containing personal information through one of the following means: shredding, destruction, modification, or other reasonable action to ensure that no unauthorized person will have access to the personal information. This obligation is broader than what employers that are required to do under the federal Fair and Accurate Credit Transactions Act, which applies solely to consumer reports. Emplyment applications, disciplinary notices, and payroll records containing "personal information" are subject to this disposal requirement. In regard to electronic documents, advice from information technology professionals is necessary to ensure that records are destroyed completely
The law imposes a civil penalty of up to $10,000 for non-compliance and provides the New York State Attorney General with broad enforcement powers. As a concession to employers, the law provides an affirmative defense to a complaint alleging a violation of the law, if the employer can establish it used due diligence to properly dispose of such records.
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