What obligation does an employer have towards sensitive employee information?

An employer has a critical obligation not to disclose sensitive employee information, making the choice to not disclose confidential information the correct response. This obligation stems from various legal protections designed to safeguard the privacy of employee data, including employment agreements, confidentiality policies, and federal laws such as the Health Insurance Portability and Accountability Act (HIPAA) or the Fair Credit Reporting Act (FCRA).

Sensitive information includes personal identification details, health records, and financial data, which, if mishandled, can lead to identity theft, discrimination, and violation of privacy rights. By ensuring that this information is kept confidential, employers not only comply with legal and ethical standards but also build trust with their employees, which is essential for a healthy workplace.

Approaches such as sharing information only with management, archiving it in public records, or selling it to third-party vendors are contrary to the principles of confidentiality and privacy protection. Each of these options can lead to potential legal ramifications and damage the employer-employee relationship, making the choice to not disclose sensitive information the most appropriate obligation for employers.