Office of Labor Relations 

LABOR RELATIONS LETTERS

 

Date: November 15, 2006 Letter No. LR 2006-02 

SL: Distribution: W-3-1; R-1 (Regional Labor Relations Officers); R-3-1 (RC); R-6, R-6-2; R-7, R-7-2, R-9 

(Labor Relations) 

Subject: Custody, security and disposal of Federal labor standards compliance 

documents and investigative records 

I. Purpose. 

II. Definitions. 

III. Custody, security and disposal of Federal labor standards compliance 

documents and investigative records. 

I. Purpose. 

 The purpose of this Letter is to reiterate HUD policy and to provide guidance for 

HUD staff and program participants regarding the custody, security, and disposal of Federal 

labor standards compliance documents and investigative records.

 The Department of Housing and Urban Development (HUD), and State, local, and 

tribal agencies as well as non-profit and some for-profit recipient organizations that 

administer HUD programs, collect, generate, and retain labor standards compliance 

documents and investigative records related to work subject to Federal prevailing wage 

requirements (e.g., Davis-Bacon wage and reporting requirements, and HUD-determined 

maintenance wage rates). These include payroll reports and other compliance documents, 

and investigative records such as employee interview statements. These documents and 

records contain highly sensitive and confidential information. For example, payroll reports 

contain workers’ personal information such as their names, Social Security Numbers 

(SSNs), home addresses, earnings, and net wages; and may contain the employer tax 

identification numbers (EINs). Employee interview statements record the identity and 

statements made by persons who are ensured confidentiality. With the growing rise in 

identity theft and fraud, it is critical that HUD and agencies administering HUD programs 

carefully guard this sensitive information so that the person(s) or firm(s) to which that 

information pertains is not unduly exposed to financial or personal risk. 

II. Definitions. 

 

For the purposes of the policy and guidelines expressed in this Letter: 
Page 2 of 4 Letter No. LR 2006-02

HUD program participants shall mean State, local, and tribal agencies as well as non-profit 

and some for-profit organizations that administer HUD programs and are responsible for 

Federal labor standards administration, compliance, and enforcement requirements 

applicable to the HUD programs they administer. This term also includes any contractors, 

consultants or others that participate in such labor standards activities on a participant’s 

behalf, including subgrantees or others if they are in possession of labor standards 

compliance documents or investigative records. 

Informant shall mean any person who provides information relating to labor standards 

compliance or enforcement. An informant may be a laborer or mechanic who files a 

complaint of underpayment. An informant may also be a person who is not a complainant, 

or is not a laborer or mechanic, but who provides information relating to labor standards 

compliance or enforcement. 

Investigative records shall mean documents assembled and/or created during the course of 

labor standards compliance reviews. Such documents include Records of On-site Interview 

(HUD-11s); employee questionnaires; interview statements; records and notes from 

informant interviews; complaints; records supplied by complainants such as pay stubs, W2s, and work calendars; back wage computations; determinations of wages due; schedules of 

wages due; and enforcement reports (required by Department of Labor regulations at 29 

CFR Part 5, Section 5.71

). 

Labor standards compliance documents shall mean documents relating to labor standards 

administration and employer compliance. These documents include employer records such 

as payroll reports; time cards; fringe benefit statements and reports; employee authorizations 

for deduction; and apprenticeship/trainee registrations; and other documents pertaining to 

labor standards compliance. 

Sensitive information shall mean the names, SSNs, and addresses of individuals reported on 

payrolls and other compliance documents; EINs; and the identity of any informant who 

makes or provides a statement in written or oral form relating to labor standards activities 

and any portion of such statement(s) that may reveal that informant’s identity. 

III. Custody, security and disposal of Federal labor standards compliance documents 

and investigative records. 

 HUD staff and program participants are required to collect, preserve, and retain labor 

standards compliance documents and investigative records for a period of three (3) years 

following the completion of the covered work, after which these documents and records may 

 

1

 See DOL Regulations 29 CFR 5.7(a); and Labor Relations Letter 92-02. 
Page 3 of 4 Letter No. LR 2006-02

be destroyed provided there are no outstanding investigations, enforcement activities, or 

appeals.2

 In addition, HUD staff and program participants create and transmit documents, in 

hard copy and in media records (e.g., computer files, storage disks, email, facsimile), 

concerning labor standards compliance and enforcement actions that relate to, or contain, 

sensitive information. Examples include review notes; back wage computations; notices to 

employers concerning compliance discrepancies; schedules of wages found due; and 5.7 

enforcement reports relating to enforcement actions, referrals for administrative review of 

findings in dispute, and recommendations for debarment. Because of the sensitive nature of 

the information contained in these documents and records, HUD staff and program 

participants must exercise care that sensitive information is not disclosed except to persons 

authorized to access the information and that documents and records that are created contain 

sensitive information only as necessary. The following guidelines will minimize the risk of 

improper and/or unnecessary disclosure. 

a) Keep sensitive materials secure at all times. HUD staff and program participants 

must ensure that documents and records containing sensitive information are 

secured while in their custody. Aggressive steps must be taken to prevent 

unintended disclosure of this sensitive information. For example, such materials 

must not be left in areas accessible to the public or left unattended in open settings; 

store these materials in a secure location (e.g., locked file cabinets) at all times 

when not in use; lock computers when unattended; and do not leave sensitive 

documents on computer display screens in the view of persons who are not 

authorized access. 

b) Do not include SSNs on documents and records unless it is absolutely necessary. 

Many times, SSNs are not relevant or not needed for the document or record 

purposes. Examples include review notes, back wage computation sheets, notices 

or schedules of back wages due that are sent to contractors or employers, and 5.7 

reports concerning completed enforcement actions or referring cases in dispute or 

recommending debarment. Notes and computation sheets may need to distinguish 

between the workers that are involved, but such distinctions can usually be made 

by the workers’ names, alone. For notices and schedules, the employer will need 

to know which employees have been underpaid and how much is due to each, but 

the employer should already have the SSNs of the affected workers. SSNs add no 

value to enforcement reports where no further action is required or recommended. 

If the enforcement report concerns findings of underpayment in dispute, the 

supporting documents that must accompany the report should contain the SSNs. 

 

2

 See DOL Regulations 29 CFR 5.6(a)(2); and HUD Handbooks 1344.1, Rev 1, Chg 1, Para 3.3(c); and 2225.6, Rev 1, Chg 60, 

Appendix 49. 
Page 4 of 4 Letter No. LR 2006-02

Recommendations for debarment, generally, are not supported by facts associated 

with SSNs. 

SSNs must be included on very few documents. Employers must include the SSN 

on the first payroll report on which an employee’s name appears. Program 

participants that transmit to HUD wage restitution that has been collected but not 

paid because underpaid workers could not be located must provide a schedule to 

HUD that includes the name, last known address and SSN for each unlocated 

worker. 

c) Do not disclose the identity of any informant unless it is necessary and only if 

authorized by the informant. Informants may offer information alleging labor 

standards violations. Often, the allegations can be substantiated, independently, 

such that the identity of the informant(s) is not crucial to defending any findings of 

violation that may result. In such cases, then, it is not necessary to reveal the 

identity of any informants to defend the findings in presentations to the employer 

or to resolve the violations. In those instances where it is necessary to disclose the 

identity of the informant(s) in order to pursue resolution, the informant(s) must

authorize the disclosure, in writing, in advance. 

d) Dispose of documents and records containing sensitive information, responsibly. 

HUD staff and program participants must ensure that any documents and records, 

including media files, which contain sensitive information are shredded or 

otherwise destroyed at disposal. Documents and records that do not contain 

sensitive information may be discarded with other waste. HUD encourages 

recycling of waste materials whenever possible. 

 Any questions regarding this Letter should be directed to the Regional or Field HUD 

Labor Relations staff responsible for the jurisdiction involved. A list of Labor Relations 

staff and contact information is available at the Office of Labor Relations website: 

www.hud.gov/offices/olr 

 /S/ 

 Edward L. Johnson 

 Director 

 Office of Labor Relations