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You are here: Home / Uncategorized / TIP 8: Confidential Records – Mum’s the Word, Boss

February 25, 2020

TIP 8: Confidential Records – Mum’s the Word, Boss

HR mistakes cost more than small businesses can afford

This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.

TIP 8: Confidential Records – Mum’s the Word, Boss

Numerous laws dictate the confidentiality of certain records. Here are two you should be aware of:

  • HIPAA – Health Insurance Portability & Accountability Act 1996. HIPAA regulates that all health information about employees – including health insurance application records -must be kept confidential by management or human resources offices. This also includes medical reports from doctors for workers’ compensation or FMLA (Family or Medical Leave).
  • FCRA – Federal Credit Reporting Act 1969. When you are doing background checks, you may want to do a credit check if the employee will be involved in handling large funds (such as a Chief Financial Officer). These credit reports must be completed by a certified firm that understands and complies with FCRA regulations. Note: These reports will only go back seven years. All credit reports must be reviewed and maintained confidentially by management or human resources.

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