Social Security Numbers

Following a merger, we are in the process of changing to a timekeeping system that will use the last 6 (six) digits of the social security number as a payroll file number. This will be done through a biometric or card reading system (varies by location), over the internet, to a central location.

Is anyone aware of any specific laws regarding the use of most of the SSN for this purpose, especially here in California? The only response I've gotten from our Corporate folks is "There is no threat of ID theft."

Thanks.

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