- The Texas Public Information Act compels public government agencies to furnish certain information upon request. The act exempts private information such as payroll and wage reports submitted by employers to the state; this sensitive employee or company information cannot be released to the public. The act does not apply to private employers.
- A particular privacy concern is the release of Social Security numbers that may result in identity theft. Texas Business and Commerce Code Section 501.001 prohibits an employer from displaying the Social Security number of an employee on any material sent by mail, including paychecks. This does not include any IRS forms such as the annual Form W-2 wage and tax statement.
- Identity theft is a felony and is punishable under federal law. The Texas Workforce Commission offers three basic principles for employers to help combat identity theft: that all of an employee’s personal information is private and confidential; that this information should be released only under court order or as a result of a law enforcement action; and that all releases of information should be from a central source. These steps can help to minimize an inappropriate release of confidential information. A company should maintain its information release policies and procedures in writing.
- Section 21 of the Texas Labor Code provides employees with various forms of protection from employer discrimination because of race, religion, age or gender, among other factors. In the event that an employee files a claim of discrimination, all information filed by the employer and all actions taken by the state are confidential under state law except in the event of a court order to the contrary. An employer that retaliates toward an employee based upon the filing of a discrimination action is subject to additional fines and penalties.
- In addition to the confidentiality of employee records, an employee may also sign an agreement not to disclose confidential or proprietary information about the company. In the past, Texas state law was ambiguous on whether an agreement of the nature could be enforced. However, the enforceability of such confidentiality agreements was affirmed by the Supreme Court of Texas in the 2006 case Alex Seshunoff Management Services L.P. v. Johnson.
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