A new law in New York State makes it illegal to require a person to disclose his or her social security number for any purpose. The new law, which goes into effect on December 12, 2012, adds a new Section 399-ddd to the state’s General Business Law.
Significantly, the prohibition on disclosure extends to “any number derived from” a person’s social security number. As a result, employers cannot require employees to disclose the last four digits of their social security number for any reason, such as an employee identification number.
The law does provide for some exceptions where disclosure is permitted, including:
- Voluntary disclosure by the person;
- In connection with processing an employment claim, such as insurance benefits, workers compensation, and unemployment claims;
- Tax compliance;
- Background checks; and
- Insurance company requests for purposes of compliance with Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007.
The law is enforced by the New York Attorney General’s office, and violators are subject to civil penalties. There is no private right of action under the law.