Privacy - Michigan

Summary of differences between federal and state regulations

Michigan has enacted a social security number privacy act to protect employee privacy in regard to social security numbers (SSNs). The law includes prohibitions on the public display of more than four sequential digits of an employee’s social security number, or the printing of more than four sequential SSNs on any identification badge or card. SSNs may not be required to be transmitted over the internet or a computer system or network unless the connection is secure or the transmission is encrypted. Employees cannot be required to use their SSNs to gain access to such a system.

Effective January 1, 2006, employers must create a privacy policy that does at least all of the following concerning employees’ SSNs:

• Ensures, to the extent practicable, the confidentiality of the SSNs.
• Prohibits unlawful disclosure of the SSNs.
• Limits who has access to information or documents that contain SSNs.
• Describes hot to properly dispose of documents that contain SSNs.
• Establishes penalties for violation of the privacy policy.

The privacy policy must be published in an employee handbook, procedures manual, or in a similar document.

Violations of the law is a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $1,000.00, or both. Those who file civil actions may recover actual damages.

State

Contacts

None.

Regulations

Michigan Compiled Laws, Chapter 445 - Trade and Commerce; Social Security Number Privacy Act

§445.83 - Prohibited use of social security number of employee, student, or other individual; exceptions.

Federal

Contacts

None.

Regulations

None.