IAPP Practical Privacy Series: Human Resources 2008

Workplace privacy obligations continue to grow more burdensome for employers. As more information about workers becomes readily available, employers are often caught between a sense that failing to use that information may lead to negligent hiring and retention claims, and a fear that using or disseminating information that is private or protected will lead to litigation in its own right.

Littler Mendelson is a member of the International Association of Privacy Professionals, and a Gold Sponsor of the IAPP's "Practical Privacy Series Human Resources 2008" conference. The conference, which will take place in New York City on June 17, will cover a range of topics, including:

  • "What to Do When a Human Resources Security Breach Inevitably Occurs":  A security breach involving human resources data is high-stakes for organizations. This presentation focuses on the most common causes of HR security breaches and explains from the trenches how to respond in compliance with applicable notice laws, and without a disgruntled workforce when the dust clears;
  • "It's 10:00 A.M. -- Do You Know Where Your Employees Are and What They Are Doing?": New technology offers employers ever more sophisticated tools to keep tabs on their employees, but to what extent does this monitoring expose them to liability? This session examines the evolving U.S. law on these issues and discusses the challenges for global employers confronting data protection regimes modeled on the EU Data Protection Directive;
  • "H.R. Risk Assessments": Safeguarding HR information often plays second fiddle to seemingly more imperative privacy data, such as patient or customer information. Yet it can be among the most sensitive at an organization. This presentation highlights key lessons learned from HR privacy risk assessments across industries, and from helping organizations remediate weaknesses in their control environments. This session looks into the logistics of operationalizing a response program and handling specific recurring incidents; 
  • Littler's own Phil Gordon will speak on "Sex Offenders, Terrorists, And Video Resumes: How Far Can You Go To Get Information About Prospective, Current, And Former Employees?": With ready access to sensitive personal information, employers are under increasing scrutiny to maintain a workforce that is beyond reproach. Social networking sites, blogs and other resources offer a wealth of information on candidates and employees. How deeply should employers tap these new information sources? This presentation will help frame the debate for your own organization; and
  • I'll be talking about how--and when--an employer can use sensitive medical information in the employment context in a presentation called "How To Handle Employee Health Information And Drug And Alcohol Testing In Compliance With The Alphabet Soup Of State And Federal Confidentiality Requirements": Managing employees’ health is a critical business imperative. Employers confront a maze of laws and regulations governing the confidentiality of employee health information, and dire consequences for mishandling such information. This session addresses questions on collecting, using, storing, documenting and disclosing employee health information, among other concerns.

If you are interested in these topics, or know someone who is, go to International Association of Privacy Professionals and click on the box titled "Practical Privacy Series." We'd love to see you there!

Our HR Manager's Laptop Was Stolen; Should We Offer Credit Monitoring Service?

As of 2006, 1 in 9 Americans had received a notice of security breach. That ratio is bound to rise with the continued onslaught of hacking and the theft of laptop computers now the crime du jour.  The decision whether to provide notice of security breach, now governed by law in 36 states and the District of Columbia, is relatively easy when compared to the decision whether to provide free credit monitoring service.

No law requires a business to offer credit monitoring after a security breach, so why do so many businesses seem to opt for it? Preventing loss of good will seems to be the answer.  According to a 2006 study by the Ponemon Institute, businesses suffer damages in lost customer opportunity cost equaling almost $100/lost record.  That loss far exceeds the cost of one year’s worth of credit monitoring which, depending upon the size of the breach and the type of service, can range from $15 to $50 per individual.

While employees are not customers, employee disgruntlement can result in loss of productivity and increased turnover with an associated increase in recruiting costs. Employers confronting the question whether to offer free credit monitoring should try to quantify these costs as compared to the cost of providing credit monitoring service. In making this calculation, employers should keep in mind that the percentage of notice recipients who actually exercise the right to credit monitoring can be low, ranging, according to one report from as little as 5% or less to as high as 30%.