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Cleaning House: The New Federal "Disposal Rule" Provides Guidelines for Disposing of Certain Personnel Records

June 2005
Employment Law Notes
Fair and Accurate Credit Transactions Act (the FACT Act). Among other things, the FACT Act directed the Federal Trade Commission (FTC) to issue regulations that require businesses to “properly dispose” of consumer information. The FTC issued its regulations in November 2004. The regulations, collectively referred to as “the Disposal Rule,” became effective June 1, 2005. This Note discusses the Disposal Rule, how it applies to employers, and the penalties for violating the Rule.