Everything seemed normal as the Human Resources Manager walked into the office that morning. But something was not right; the office “felt different.” A quick glance around and toward the ceiling revealed that a ceiling tile was out of place. Closer inspection showed evidence that someone had come into the HR office through the ceiling. At first nothing appeared to be missing. There was no safe in the office. The locked file cabinets containing files were not disturbed. Certainly no valuables, money or other things of value were there to be taken. But then it was discovered that the three-ring binder containing I-9 forms was missing from the top of one of the cabinets. The security officer was puzzled. Why would someone go to the trouble of breaking into the HR office just to steal some paper forms? The answer turns out to be simple.

Just Who Do You Think I Am
Personnel documents, such as I-9 forms, contain precious information valuable to identity thieves. On one page may be listed an individual’s social security number, date of birth, address, former name, background and other personal confidential information from documents such as birth certificates or driver’s licenses - sometimes with a copy of the actual other personal document attached for reference.

The Federal Trade Commission (FTC) reported over two years ago that 90% of business record thefts involve payroll or employment records. Sometimes the records are made available through negligence rather than theft, as may have been the case earlier this year in Dallas, Texas where a filing cabinet at a liquidation sale was found to contain personnel files with personal information from employees of the organization that discarded the cabinet.

New Legislation
Lawmakers are responding with legislation requiring employers to change practices. On June 1, 2005 a new federal rule took effect requiring employers to properly dispose of sensitive information derived from employee consumer reports. States have followed suit and have passed a variety of laws on discarding such information and limiting its use.

What This Means To You
In this age of privacy concerns and identity theft, human resources managers and others responsible for employee data should review procedures to safeguard employee personal information. Great embarrassment can result from loss of confidential data such as that contained in many personnel, human resources, insurance, benefits or other company files. Additionally, employees are put to great trouble when they must take steps to counter the loss of individual data. The resulting problems can haunt an individual for many years. You should take steps to protect employee personal information contained in electronic as well as paper and other files. Even if your state currently allows it, stop using, or restrict the use of, employee social security numbers (in whole or in part) for identification and other non-payroll, tax or other necessary purposes. If you need more information, let us know.

Christine Howard is a partner with Fisher & Phillips, LLP, an Atlanta-based law firm with sixteen offices around the country. The firm represents employers nation-wide in labor, employment, employee benefits and business immigration matters. Christine advises and defends employers in these practice areas. She may be reached at choward@laborlawyers.com or 404-240-4291.