Businesses have more data about their employees than ever before, and the amount of data is growing. Data availability has increased dramatically in recent years, particularly due to the evolution of remote and hybrid work arrangements and the creation of digital work channels that employers can use to monitor and track employees.
Furthermore, employee health and well-being have become a greater priority for employees and employers. Employees now routinely share health data about vaccination status and COVID-19 exposure as a basic employment requirement. Most employees also want emotional and psychological support from employers, beyond the minimum support that may have been expected in the past. Assessing and meeting those needs requires employers to gather personal and sensitive employee data that can raise serious privacy concerns.
As a result, businesses need to create a mechanism to handle employee data fairly and responsibly. This mechanism should be transparent to employees from a regulatory compliance standpoint and create a trust-based partnership between employees and employers.
Creating an Employee Data Bill of Rights
Companies can create an employee data bill of rights, or a set of foundational principles for collecting and using employee data. The bill of rights should focus on the following four foundational principles.
The Right to Purpose
Companies should have a legitimate and specific business purpose for every piece of data that they collect about employees. Employers should examine why they are collecting the data, how they will process and use it, and how long they must retain it to achieve their purpose in collecting the data. This right helps build trust with employees and prevents employers from collecting data that doesn’t give them any real value.
The Right to Minimization
Employers should take care to minimize the data that they collect. In other words, they should not collect more data than they need to meet their legitimate business purpose effectively. They also generally should utilize less invasive methods or collect less sensitive data from employees if they can achieve the same goals as using more invasive methods or collecting more sensitive data.
The Right to Fairness
Companies should pledge to use the collected data to reinforce equity in the workforce. However, collecting sensitive data from employees can increase the risk of conscious or unconscious bias in decision-making. Therefore, companies must utilize the information to enhance rather than limit equality of access and opportunity in the workplace.
The Right to Awareness
Employers should clarify from the start what data they are collecting from employees and why they are collecting it. Awareness directly impacts employees’ ability to trust their employers and their perception of fairness. Therefore, employers must have a solid communication plan that is transparent about data collection and invites employee feedback.
Implementing the Data Bill of Rights
An effective Data Bill of Rights must not be merely aspirational. Businesses should create lists of employee data rights that encompass the four foundational principles above and other rights that may be unique to their organizations.
Organizational leaders should also ensure that the business follows through on employee data rights. For instance, a business might establish a committee or task force to oversee data rights issues. Alternatively, a business might create a data ethics board composed of human resources and employee representatives to deal with employee data.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
Latest posts by Hall Benefits Law, LLC (see all)
- Colorado First State to Place Price Cap on Prescription Drug - November 27, 2025
