Business Council Applauds Gov. Spitzer's Veto of Bill that Would Prohibit SSN for Employee ID

The Business Council of New York State today applauded Governor Spitzer's veto of S. 4565, that would have prohibited employers from using Social Security numbers for employee identification, saying that it would impose "broad unworkable restrictions on the state's business community."

"While we believe that the sponsors' intent was to address a specific privacy concern, this bill imposes broad, unworkable restrictions on the state's business community," Business Council President and CEO Kenneth Adams wrote in a June 28 letter to the governor, cited in the release.

"Employers are obligated by law to use Social Security numbers to 'identify' employees for federal and state income and tax reporting purposes," Adams wrote. "Further, Social Security numbers are commonly used by employers for employee identification with regard to payroll, retirement plans (including 401(k) plans) and insurance programs."

Legislation designed to protect employees from identity theft should not prohibit usage of Social Security numbers where it is otherwise required by law, Adams wrote.