Disclosure of Employee Personal Information
Posted: 13 March 2013 11:32 AM   [ Ignore ]
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We are obtaining a quote (not signing a contract) from an Employee Leasing Company in which that company is requesting our employees personal information such as name, address, ss# and dob. Can we legally divulge this information without our employees knowledge of our doing so? We operate out of several different states such as FL, GA, NY, NJ, MA, MI, OH, UT.

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Posted: 14 March 2013 10:43 AM   [ Ignore ]   [ # 1 ]
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Generally, no you would not want to give out that information, especially the social security number.  Why is the agency requesting information about your current employees? That is not information they would need in order to provide you with a quote for services.

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Posted: 14 March 2013 11:21 AM   [ Ignore ]   [ # 2 ]
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I am not sure how to say this nicely, so I’ll just say it. I have been in business for 11 years now doing HR outsourcing and have yet to run into an employee leasing company that I trust. 

With that being said, there may be two reasons for them to ask for this information.  The first is that if you accept their proposal, then the employee leasing company will become the employer of record and they want to do background checks on them before they accept you as a client.  More than likely, they would want to check workers comp claims history on your employees to see if they would be inheriting any risk.

The second reason could be to get a census for quotes for medical insurance.  But in this case, they would not need the names or the social security information.  All they would need is the age, gender, zip code and possibly the job title to get an insurance quote for them.

Have you asked them what they will be doing with this information? 

If they are not up front about the necessity for this, my recommendation would be to look elsewhere.  What else would they try to hide from you in the future. 

I hope this helps.

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Bob McKenzie
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Posted: 14 March 2013 11:23 AM   [ Ignore ]   [ # 3 ]
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I would never release our employee’s information to anyone without a signed consent from each employee.

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