About New Hire Reporting
In August 1996, Congress passed the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA), commonly referred to as "Welfare Reform," which included a
mandate that all states must establish a central repository for new hire reporting and
that all employers must report their new hires for inclusion in the repository.
New hire reporting is a simple process by which employers report information on
newly-hired and/or re-hired employees to a designated state agency shortly after the
date of hire.
What is the information used for?
States match the new hire reports against their child support records to locate
parents, establish an order, or enforce an existing order. With new hire reporting,
state child support enforcement agencies have the ability to issue wage withholding
orders (the most effective means of collecting child support) much more quickly. State
agencies may also conduct matches between their new hire database and certain other
state programs, such as public assistance, unemployment and worker's compensation
files, to prevent unlawful or erroneous receipt of benefit payments.
Once those matches are done, the State submits their new hire reports to a National
Directory of New Hires (NDNH), a component of the Federal Parent Locator Service (FPLS).
The FPLS receives the new hire data from all states, and along with other state employment
information, matches it against state locate requests. When there is a match, the FPLS
provides the locate information to the state requesting it. The FPLS is a valuable tool
for states in locating parents who are not providing support for their children. It is
especially helpful for child support cases involving more than one state, often the most
difficult cases for states to handle. New hire reporting was part of a major expansion
of the FPLS and other features are added regularly.
Will the information be kept private?
A major focus for all those involved in the implementation of the new hire program is
the development of safeguards for the security and privacy of the data. Federal law
requires all states to establish safeguards for confidential information handled by
state agencies. All State data is transmitted over secure and dedicated lines to the
NDNH. Federal law also requires the Secretary of the Department of Health and Human
Services to establish and implement safeguards to protect the integrity and security
of information in the NDNH and to restrict access to and use of the information to
authorized persons and purposes.