Bans the use of employer data reports

BILL NUMBER:S5554A

Title of bill

An act to amend the general business law, in relation to banning the sale of employment data reports

Purpose or general idea of bill

Bans the sale of employment data reports

Summary of specific provisions

Section 1: Section 380-u of the article is relettered section 380-v, and a new section 380-u is added, which would ban the sale of employment data reports by consumer reporting agencies without written consumer consent in a separate stand-alone document. This section also adds what is included in employment data reports, such as payroll and earning information, hours an employee has worked, consumer history and health insurance information. Section 380-u(b) charges the Attorney General with the enforcement of this law, This section also includes a civil penalty of 2,000 dollars for each violation of this statute to be imposed on the consumer reporting agencies.

Section 2: Contains the effective date.

Justification

The "Work Number" provides employment data reports, and is operated by TALX Corporation, which is owned by the credit reporting agency Equifax. The "Work Number" permits companies to outsource payroll and human resource functions and maintains information on at least 30% of the U.S. working population.

According to an NBC News report, Equifax has been selling employment reports, including detailed health insurance and payroll information, to third parties, such as debt collectors and other financial services corporations. This is an invasion of consumers' and employees' privacy. Moreover, many employees are unaware of this sale of their detailed payroll information to third parties. This legislation would prohibit consumer reporting agencies from selling employment data reports to third parties.

Prior legislative history

None.

Fiscal implications

None.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.