Labor Relations and Employment Law
Representing Management Since 1962
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June 3, 2005 RE: Federal Overtime Regulations on Consumer Information Protection As of June 1, 2005, new rules are in place to regulate the disposal of consumer report information and records. The purpose of the rules is to reduce the risk of consumer fraud, identity theft and similar harms. The Fair and Accurate Credit Transactions Act (FACT Act) amended the Fair Credit Reporting Act by imposing new requirements on companies that possess or maintain consumer information. Employers that obtain consumer reports on applicants or employees are subject to the new requirements. Employers that gather such information must take “reasonable measures” to protect against authorized access to or use of consumer information when disposing of such information. “Reasonable measures” will vary based on a company’s size, the costs and benefits of available disposal methods, and the sensitivity of the information involved. The FTC provides a listing of suggested “reasonable measures” that an employer may use to comply. These measures include such efforts as policy formulation, dissemination and training, and due diligence in investigating the competence and integrity of the disposal company. As always, should you have any questions or concerns, please do
not hesitate to contact us. Sincerely, Peter Bennett |