Comment on Legislation to Ban the Sale and Use of Employer Data Reports without Consumer Consent

SUMMARY

The Committee on Consumer Affairs issued a memo in support of state legislation that would prohibit consumer reporting agencies from selling employment data reports to third parties, except when the consumer has consented in a stand-alone document. This legislation is designed to curb the widespread sale of employee-related information, including detailed health insurance and payroll information, to such entities as debt collectors and other financial services corporations. This information often is inaccurate and is subject to abusive and discriminatory use. While the Committee supports the legislation, it urged removal of the consent exception, or to bar retaliation for refusal to sign a consent, as individuals often are pressured to consent.

Originally Issued May 2014; Reissued April 2015

BILL INFORMATION

A.1071 (AM Braunstein) / S.3795 (Sen. Sanders) – bans the sale of employment information, including payroll and earnings information, hours worked, consumer
history and health insurance information (NYS 2015)