§4662 — Title 10 Armed Forces | U.S. Code

Summary

Every Department of Defense contract made after this law was passed must stop contractors and subcontractors from selling, licensing, or otherwise giving away covered individual employee data to anyone outside the federal government, unless sharing the data is needed to do the work under the contract or another law allows it. The Secretary of Defense can make an exception (a waiver) only if the Secretary considers the privacy risks to the employee and finds the waiver is needed for national security. By January 15, 2026, and then once a year for four more years, the Under Secretary of Defense for Acquisition and Sustainment must send the congressional defense committees a report about any waivers used in the previous fiscal year. Each report must say why each waiver was given, name the contractor or subcontractor, and say the purpose of the sale, license, or transfer. Definitions: "covered individually identifiable Department employee data" = employee-identifying data a contractor or subcontractor gets under such a contract. "individually identifiable Department employee data" = information that identifies an employee or could be used to figure out who the employee is.

Title 10, §4662

Armed Forces — Source: USLM XML via OLRC

(a)Each contract entered into by the Department of Defense on or after the date of the enactment of this section shall include a provision prohibiting the contractor and each subcontractor under such contract from selling, licensing, or otherwise transferring covered individually identifiable Department employee data to any individual or entity other than the Federal Government, except to the extent required to perform such contract or a subcontract under such contract. This provision does not apply in circumstances where the transfer of such data would otherwise be authorized by law.

(b)The Secretary of Defense may waive the requirements of subsection (a) with respect to the sale, licensing, or other transfer of covered individually identifiable Department employee data if the Secretary determines that such waiver—

(1)appropriately considers the privacy risks to the employee of the Department of Defense to which such data relates; and

(2)is necessary in the interest of national security.

(c)Not later than January 15, 2026, and annually thereafter for four years, the Under Secretary of Defense for Acquisition and Sustainment, shall submit to the congressional defense committees a report on the use of the waiver authority under subsection (b) for the fiscal year preceding the date of submission of the report. The report shall include, for each use of the waiver—

(1)the specific justification for providing the waiver;

(2)an identification of the contractor or subcontractor that is the subject of the waiver request; and

(3)an identification of the purpose of the sale, licensing, or transfer of covered individually identifiable Department employee data that is the subject of the waiver request.

(d)In this section:

(1)The term “covered individually identifiable Department employee data” means individually identifiable Department employee data obtained by a contractor or subcontractor described in subsection (a).

(2)The term “individually identifiable Department employee data” means information related to an employee of the Department of Defense, including a member of the Armed Forces, that—

(A)identifies such employee; or

(B)which may be used to infer, by either direct or indirect means, the identity of such an employee to whom the information applies.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of the enactment of this section, referred to in subsec. (a), is the date of enactment of Pub. L. 118–31, which was approved Dec. 22, 2023.

Amendments

2024—Subsec. (a). Pub. L. 118–159, § 836(1), struck out “and that would be permissible pursuant to statute or guidance from the Director of the Office of Management and Budget” after “or a subcontract under such contract” and inserted at end “This provision does not apply in circumstances where the transfer of such data would otherwise be authorized by law.” Subsec. (b). Pub. L. 118–159, § 836(2), amended subsec. (b) generally. Prior to amendment, text read as follows: “The Secretary of Defense may waive the requirements of subsection (a) with respect to a sale, licensing, or other transfer of covered individually identifiable Department employee data if the Secretary determines that such waiver is appropriate.” Subsecs. (c), (d). Pub. L. 118–159, § 836(3), (5), added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d)(1). Pub. L. 118–159, § 836(4), amended par. (1) generally. Prior to amendment, par. (1) defined covered individually identifiable Department employee data.

§4662 Prohibition on the transfer of certain data on employees of the Department of Defense to third parties