Data Privacy
Definition
The practice of protecting personal employee information stored in digital HR systems.
What is Data Privacy?
Data privacy refers to the protection and responsible handling of employee personal, financial, and employment data. This includes everything from Social Security numbers to health and payroll details stored in digital systems.
Why is Data Privacy Important for Employers?
With sensitive employee data housed digitally, employers must:
- Comply with laws like HIPAA, GDPR, and state-specific privacy acts (e.g., CCPA)
- Prevent data breaches and identity theft
- Build trust with employees through responsible data handling
Data privacy also intersects with employment law, cybersecurity, and compliance—making it a top risk area for HR.
FAQs
Who has access to employee data in an HRIS?
Only authorized HR/admin users. Systems should use role-based permissions.
Are there laws about storing employee data?
Yes. FLSA, HIPAA, CCPA, and others set strict rules on what data must be protected and for how long.
Can employees access their own data?
Yes, transparent systems and self-service portals are becoming standard practice.
How ExtensisHR Can Help
ExtensisHR provides:
- Secure cloud-based HRIS platforms with controlled access
- Guidance on data retention and deletion policies
- Audit trails and encryption standards
- Support for compliance with federal and state data privacy laws