Labor Dept Shares Privacy Data to Hunt Payment Fraudsters
Published Date: 4/21/2026
Notice
Summary
The Department of Labor is updating eight privacy record systems to share certain info with the Treasury Department to help stop fraud and improper payments. They’re also adding new rules to handle data breaches better. These changes take effect on May 21, 2026, unless public comments suggest otherwise—so speak up by then!
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
DOL shares records with Treasury Do Not Pay
The Department of Labor is adding a routine use that allows it to share records from eight DOL systems with the U.S. Department of the Treasury’s Do Not Pay Working System to identify, prevent, or recoup improper payments. The affected systems include: OCFO-2 (New Core Financial Management System), OMBUDSMAN-1 (EEOICPA file), OWCP-2, OWCP-3, OWCP-4, OWCP-5, OWCP-9, and OWCP-11. This change will be effective beginning May 21, 2026 unless public comments lead to changes.
New breach-response data sharing rules
DOL is adding two model routine uses (from OMB Memorandum M-17-12) to the same eight systems to allow disclosure of personally identifiable information in response to suspected or confirmed data breaches. One permits DOL to share information with appropriate agencies, entities, and persons to respond to or prevent harm from a breach; the other permits sharing to help other Federal agencies respond to breaches. These routine uses will be effective beginning May 21, 2026 unless changed after public comment.
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