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Can I use third-party HR tools that collect personal information in Alabama? What are the requirements?

Requirements for Using Third-Party HR Tools that Collect Personal Information in Alabama

Alabama has not enacted a comprehensive data privacy law. However, Alabama employers must comply with federal laws that regulate the collection, use, and disclosure of personal information.

If you plan to use third-party HR tools that collect personal information, you must ensure that the tools comply with the following federal laws:

  1. The Fair Credit Reporting Act (FCRA): If you use third-party HR tools to conduct background checks on job applicants, you must comply with the FCRA. The FCRA requires employers to obtain written consent from job applicants before conducting background checks and to provide them with a copy of the report if the employer decides not to hire them based on the report. [2]
  2. The Americans with Disabilities Act (ADA): If you use third-party HR tools to collect medical information from job applicants or employees, you must comply with the ADA. The ADA prohibits employers from discriminating against job applicants or employees based on their disabilities and requires employers to keep medical information confidential. [3]
  3. The Health Insurance Portability and Accountability Act (HIPAA): If you use third-party HR tools to collect health information from job applicants or employees, you must comply with HIPAA. HIPAA requires covered entities to protect the privacy and security of individuals’ health information. [1]
  4. The Electronic Communications Privacy Act (ECPA): If you use third-party HR tools to monitor employees’ electronic communications, you must comply with the ECPA. The ECPA prohibits employers from intercepting employees’ electronic communications without their consent. [5]

It is important to note that this is not an exhaustive list of federal laws that may apply to the use of third-party HR tools that collect personal information. You should consult with a legal professional to ensure that your use of these tools complies with all applicable laws.

Source(s):
Jurisdiction

Alabama