Social Security Number Privacy Act

Social Security Number Privacy Act


Effective January 1, 2006, The Social Security Number Privacy Act requires that any person who obtains a Social Security Number in the ordinary course of business must create a privacy policy that does at least all of the following:

  • Ensures the confidentiality of the Social Security Number
  • Prohibits unlawful disclosure of the Social Security Number
  • Limits who has access to information or documents that contain the Social Security Number
  • Describes how to properly dispose of documents that contain the Social Security Number
  • Establishes penalties for violation of the privacy policy

A person that creates a privacy policy must publish the privacy policy in an employee handbook, in a procedures manual or in one or more similar documents which may be available electronically.

This new law does not apply to a person who possesses a Social Security Number in compliance with the Fair Credit Reporting Act or the Gramm Leech Bliley Act.

If you have any questions on this new law you may contact Ed Castellani at 517.377.0845 or ecastellani@fraserlawfirm.com.