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In Los Angeles and other cities in America, companies have data management systems that protect information vital to their operations. In case of critical incidents such as identity theft and consumer fraud, paper and electronic records can be destroyed to protect individuals and businesses. A common practice among companies to get rid of confidential information is document shredding in Los Angeles and other U.S. cities. Other than securing documents, shredding is required by the United States government. Financial records, medical charts, and other documents should be properly destroyed to protect privacy. The laws uphold accountability among professionals and industries, as well as set standards for protection of sensitive information. HIPAA Under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), companies involved in health care services should treat patient information with utmost caution and confidentiality. HIPAA guidelines don't specify how patient documents should be disposed, but the American Health Information Management Association authorizes shredding as a legitimate way to destroy documents. Medical institutions and health insurance companies should comply with HIPAA regulations. HITECH The Health Information Technology for Economic and Clinical Health (HITECH) Act contains changes to be made in HIPAA guidelines. Business associates are required to notify their clients of any breach of information. In addition, HITECH expands the list of people who can seek indemnification resulting from the breach and increases penalties for violators of privacy restrictions and other provisions stated in the law. GLBA The Gramm-Leach-Bliley Act (GLBA) of 1999 tackles notices to privacy and financial information. Personal information concerning finances of an individual should be safeguarded by insurance companies and banks. GLBA obliges monetary institutions to put an information security program in writing and enforce document shredding in Los Angeles and other cities when a client's personal data is in danger of exposure. SOX Signed into law in 2002, the Sarbanes-Oxley (SOX) Act supports the other Acts and stresses the need for oversight and the public's participation in reporting data privacy breaches. SOX expands the rules on what information should be preserved or destroyed. For other laws that cover the data management industry, visit ehow.com/list_6309294_document-shredding-laws.html.
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