Does your HR staff know the limits on what they could tell prospective employers about former employees?

In this case, the US Equal Employment Opportunity Commission (EEOC) alleged that 7-Eleven of Hawaii failed to keep a former employee’s medical information confidential by disclosing the information to a prospective employer, in violation of the ADA, which caused the prospective employer to rescind a job offer. The EEOC filed suit in federal district court ( EEOC v 7-Eleven of Hawaii, Inc, DHaw, No CV 07-00478-SPK-BMK) and, after the District Court ruled in 7-Eleven’s favor, the EEOC appealed the decision in August 2008 to the US Court of Appeals for the Ninth Circuit.

However, on August 2, the EEOC announced a settlement under which 7-Eleven of Hawaii will:

  1. pay $10,000,   
  2. provide annual training to its human resources personnel and managers in equal employment opportunity, with an emphasis the ADA requirements concerning confidentiality, and
  3. for a period of two years, 7-Eleven will also be required to report annually to the EEOC regarding the company’s policies and proposed training programs with respect to disability discrimination, medical disclosure, non-retaliation, and reasonable accommodation.

In comments about the case, EEOC representatives made clear that the ADA confidentiality requirements apply to applicants, current employees and former employees. Earlier in the year, we wrote about a recent EEOC senior staff attorney’s informal letter concerning the duties of federal employees and contractors relating to medical confidentiality. It is unclear whether these actions by the EEOC suggests a greater emphasis on enforcement of medical records confidentiality under the ADA. Regardless, employers should be taking preventive steps to comply with these requirements. Some steps include:

  • Creating a culture of confidentiality concerning medical records, whether those records are subject to ADA, HIPAA or some other law.
  • Reminding employees that medical information is confidential and access is on a need-to-know basis.
  • Reviewing and revising administrative, physical, and technical safeguards as necessary and appropriate to safeguard medical information, such as requiring employees to keep their desks clear of sensitive information and locking doors and file cabinets.
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Joseph J. Lazzarotti Joseph J. Lazzarotti

Joseph J. Lazzarotti is a principal in the Berkeley Heights, New Jersey, office of Jackson Lewis P.C. He founded and currently co-leads the firm’s Privacy, Data and Cybersecurity practice group, edits the firm’s Privacy Blog, and is a Certified Information Privacy Professional (CIPP)…

Joseph J. Lazzarotti is a principal in the Berkeley Heights, New Jersey, office of Jackson Lewis P.C. He founded and currently co-leads the firm’s Privacy, Data and Cybersecurity practice group, edits the firm’s Privacy Blog, and is a Certified Information Privacy Professional (CIPP) with the International Association of Privacy Professionals. Trained as an employee benefits lawyer, focused on compliance, Joe also is a member of the firm’s Employee Benefits practice group.

In short, his practice focuses on the matrix of laws governing the privacy, security, and management of data, as well as the impact and regulation of social media. He also counsels companies on compliance, fiduciary, taxation, and administrative matters with respect to employee benefit plans.

Privacy and cybersecurity experience – Joe counsels multinational, national and regional companies in all industries on the broad array of laws, regulations, best practices, and preventive safeguards. The following are examples of areas of focus in his practice:

  • Advising health care providers, business associates, and group health plan sponsors concerning HIPAA/HITECH compliance, including risk assessments, policies and procedures, incident response plan development, vendor assessment and management programs, and training.
  • Coached hundreds of companies through the investigation, remediation, notification, and overall response to data breaches of all kinds – PHI, PII, payment card, etc.
  • Helping organizations address questions about the application, implementation, and overall compliance with European Union’s General Data Protection Regulation (GDPR) and, in particular, its implications in the U.S., together with preparing for the California Consumer Privacy Act.
  • Working with organizations to develop and implement video, audio, and data-driven monitoring and surveillance programs. For instance, in the transportation and related industries, Joe has worked with numerous clients on fleet management programs involving the use of telematics, dash-cams, event data recorders (EDR), and related technologies. He also has advised many clients in the use of biometrics including with regard to consent, data security, and retention issues under BIPA and other laws.
  • Assisting clients with growing state data security mandates to safeguard personal information, including steering clients through detailed risk assessments and converting those assessments into practical “best practice” risk management solutions, including written information security programs (WISPs). Related work includes compliance advice concerning FTC Act, Regulation S-P, GLBA, and New York Reg. 500.
  • Advising clients about best practices for electronic communications, including in social media, as well as when communicating under a “bring your own device” (BYOD) or “company owned personally enabled device” (COPE) environment.
  • Conducting various levels of privacy and data security training for executives and employees
  • Supports organizations through mergers, acquisitions, and reorganizations with regard to the handling of employee and customer data, and the safeguarding of that data during the transaction.
  • Representing organizations in matters involving inquiries into privacy and data security compliance before federal and state agencies including the HHS Office of Civil Rights, Federal Trade Commission, and various state Attorneys General.

Benefits counseling experience – Joe’s work in the benefits counseling area covers many areas of employee benefits law. Below are some examples of that work:

  • As part of the Firm’s Health Care Reform Team, he advises employers and plan sponsors regarding the establishment, administration and operation of fully insured and self-funded health and welfare plans to comply with ERISA, IRC, ACA/PPACA, HIPAA, COBRA, ADA, GINA, and other related laws.
  • Guiding clients through the selection of plan service providers, along with negotiating service agreements with vendors to address plan compliance and operations, while leveraging data security experience to ensure plan data is safeguarded.
  • Counsels plan sponsors on day-to-day compliance and administrative issues affecting plans.
  • Assists in the design and drafting of benefit plan documents, including severance and fringe benefit plans.
  • Advises plan sponsors concerning employee benefit plan operation, administration and correcting errors in operation.

Joe speaks and writes regularly on current employee benefits and data privacy and cybersecurity topics and his work has been published in leading business and legal journals and media outlets, such as The Washington Post, Inside Counsel, Bloomberg, The National Law Journal, Financial Times, Business Insurance, HR Magazine and NPR, as well as the ABA Journal, The American Lawyer, Law360, Bender’s Labor and Employment Bulletin, the Australian Privacy Law Bulletin and the Privacy, and Data Security Law Journal.

Joe served as a judicial law clerk for the Honorable Laura Denvir Stith on the Missouri Court of Appeals.