You should contact the state where you will be submitting your New-Hire reports for all technical information regarding electronic reporting. Security and privacy of New-Hire data are important issues for all those involved in the implementation of this nationwide program. Federal law requires all states to establish safeguards for confidential information handled by the state agency. All state data will be transmitted over secure and dedicated lines to the National Directory of New Hires. Federal law also requires that the Secretary of DHHS 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.
States have the option of imposing civil monetary penalties for noncompliance.
States may also impose nonmonetary civil penalties under State law for noncompliance. The apparent intent of the law is that the penalty be imposed for each new employee that the employer fails to report. The Department of Health and Human Services is recommending a technical amendment to the law to clarify that intent. If you are a multistate employer, you may report newly hired employees to the state in which they are working or you may select one of these states to which to report all of your New Hires. If one state is chosen, your New-Hire reports must be submitted by magnetic tape or electronically.