On December 18, 2010 President Obama signed into law the Social Security Number Protection Act of 2010. The law has two key components.
First, the law establishes that no Federal, State, or local agency may display the Social Security account number of any individuals or any derivative of such number, on any check issued for payment by said agency.
Second, the law prohibits Federal, State, or local agencies from employing, or entering into a contract for the use or employment of, prisoners in any capacity that would allow such prisoners access to the Social Security account numbers of other individuals.
As employers have been grappling with the recent uptick in state laws addressing safeguards for Social Security numbers, this new law tightens protections at the federal level. Additionally, federal contractors may need to consider how this change impacts their other obligations under the Federal Information Security Management Act.