The National Directory of New Hires: An Overview (CRS Report for Congress)
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| Release Date |
Revised Jan. 19, 2024 |
| Report Number |
RS22889 |
| Report Type |
Report |
| Authors |
Carmen Solomon-Fears, Specialist in Social Policy |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The National Directory of New Hires (NDNH) is a database (part of the Federal Parent Locator Service [FPLS]) that contains personal and financial data on nearly every working American, as well as those receiving unemployment insurance benefits. It was originally established as part of the 1996 welfare reform law (P.L. 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996; PRWORA). It is maintained by the Office of Child Support Enforcement (OCSE). The NDNH is a database that includes information on (1) all newly hired and rehired employees, compiled from state reports (and reports from federal employers), (2) the quarterly wage reports of existing employees (in Unemployment Insurance [UI]-covered employment), and (3) UI applications and claims. The NDNH was originally established to help states locate noncustodial parents living in a different state so that child support payments could be withheld from that parent's paycheck. Since its enactment in 1996, the authority to access the NDNH has been extended to several additional programs and agencies to verify program eligibility, prevent or end improper payments, collect overpayments, or ensure that program benefits are correct. Although the directory is considered to be effective, concerns about data security and the privacy rights of employees remain a part of debates regarding expanded access to the NDNH. In addition, some observers have argued that the fact that the NDNH does not include data on non-wage workers (e.g., independent contractors) limits its effectiveness as a child support enforcement tool.
