Protecting Your Social Security Number

For decades, your social security number (SSN) was openly displayed on every vital piece of identification. In the mid-1990s, with the emergence of the Internet and the widespread dissemination of personal information, Congress, recognizing the potential for fraud, began to craft legislation to limit the use of SSNs. In 2005, while Washington slowly worked on legislation, California amended its existing Labor Code § 226 to prohibit employers from posting or displaying of employees’ complete SSN on their paystubs.

Displaying all Digits of Your SS# on Your Pay Stub is Illegal and Violates Your Privacy

The amended California Labor Code § 226 changed the look of California employees' pay stubs and the way employers treat their employees' personal information. The law now requires employers to provide their employees with an itemized pay stub that identifies the employee only by name and the last four digits of the Social Security number, or alternatively, by an identification number. The change in the law stemmed from concern with identity theft and applies to both paper and electronic wage statements issued to employees. In addition, the law places civil and criminal penalties on violators, and allows compensation to victims, which can be substantial. Many other states have since followed California and enacted similar laws restricting the use of SSNs on pay stubs.

Some Employers Slow to Respond

Why did lawmakers amend Labor Code § 226 with regard to the use of SSN's? Pay stubs often
end up in the trash, and that is the first place thieves hunt for your personal information. A
company that prints the SSN on your pay stub is exposing you to potential identity theft and it
is violating the law.

Why have companies been slow to implement the required pay stub requirement changes? New
payroll systems are expensive, and employers have little incentive to change. Were it not for
enforcement actions, many companies would still be dragging their feet. Class action lawsuits
have been one of the most effective ways to force employers to protect their employees' privacy
rights. Displaying the SSN on your pay stub shows a company's reckless disregard for your
privacy and an enforcement action can hold the company liable even if you haven't suffered a
monetary loss.

How to fix it

If you're working for a company that is displaying your SSN on your pay stub, please contact
Steven L. Miller a Professional Law Corporation for a no obligation, free consultation at 855-216-9303. You may obtain compensation and stop your employer from violating your legal rights.