Tuesday, August 16, 2005

Trashing employee data: Rules govern disposal of info

Chrys A. Martin
Special to the Business Journal

Does your business do background checks on applicants? What do you do with that information once an employment decision is made? New regulations from the federal government and several states require employers to take specific steps to protect that information, so now is the time to establish new policies and procedures to comply.

The Federal Trade Commission now requires employers (and others) to safeguard "consumer information" when that information is discarded. "Consumer information" includes an individual's credit reports and scores, criminal background information, property holdings and similar personal information. Many employers seek out such data from employment applicants either directly or through companies which specialize in conducting background and credit checks.

The new rule requires that employers take "reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal" by implementing a data-disposal policy. Examples of proper disposal include shredding paper documents or erasing electronic data. If the protected information is not destroyed before it is disposed of, the company is responsible for ensuring that whatever garbage collector or outside disposal vendor is used by the company has appropriate policies for protecting the privacy of such information. Read Full Story

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