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

Requirements for using third-party HR tools that collect personal information in South Carolina

If you plan to use third-party HR tools that collect personal information in South Carolina, you must comply with the state’s data protection laws. South Carolina has not enacted a comprehensive data protection law, but several state and federal laws apply to the collection, use, and disclosure of personal information.

South Carolina Identity Theft Protection Act

The South Carolina Identity Theft Protection Act requires businesses that collect personal information to implement and maintain reasonable security procedures and practices to protect the information from unauthorized access, destruction, use, modification, or disclosure [1.2]. The Act defines personal information as an individual’s first name or first initial and last name in combination with any one or more of the following data elements:

  • Social Security number
  • Driver’s license number or other government-issued identification number
  • Financial account number or credit or debit card number in combination with any required security code, access code, or password that would permit access to the account

Federal Laws

Several federal laws also apply to the collection, use, and disclosure of personal information by businesses, including:

  • The Health Insurance Portability and Accountability Act (HIPAA) [1.3]
  • The Children’s Online Privacy Protection Act (COPPA) [1.4]
  • The Fair Credit Reporting Act (FCRA) [1.5]

Other Considerations

In addition to complying with data protection laws, businesses that collect personal information should also consider implementing privacy policies that disclose their data collection, use, and disclosure practices. They should also obtain consent from individuals before collecting their personal information and provide individuals with the ability to access, correct, and delete their personal information.

Conclusion

To use third-party HR tools that collect personal information in South Carolina, businesses must comply with the South Carolina Identity Theft Protection Act and other applicable state and federal laws. They should also consider implementing privacy policies and obtaining consent from individuals before collecting their personal information.

Source(s):
Jurisdiction

South Carolina