Federal employees provide the government with a significant amount of sensitive personal information throughout their careers, including Social Security numbers, financial data, employment records, and, in some cases, background investigation materials.

As federal agencies increasingly rely on digital systems to store and manage this information, concerns about unauthorized access, data breaches, and privacy violations have become more prevalent.

A recent federal court decision has drawn significant attention after a judge found that the Office of Personnel Management (OPM) improperly granted broad access to systems containing sensitive personnel information without adequately demonstrating that certain individuals had a legitimate need to view those records. The court concluded that efforts to modernize government information technology systems did not, by themselves, justify access to confidential employee data and emphasized the importance of privacy safeguards and cybersecurity controls.

The ruling is similar to a cluster of 2025–2026 federal cases challenging access to agency data systems under the Privacy Act of 1974 and the Administrative Procedure Act, a federal law that governs how federal agencies make decisions and carry out their actions.

The cases share a common thread: agencies reportedly gave U.S. Department of Government Efficiency (DOGE) — established by executive order on January 20, 2025, with the stated goal of modernizing federal technology, reducing inefficiencies, and improving government productivity — broad access to systems of records holding sensitive personal data. Plaintiffs argued that such access constituted unlawful disclosure under the Privacy Act’s § 552a(b)(1).

What to Know About the Privacy Act of 1974 

The Privacy Act of 1974 is a federal law designed to protect personal information maintained by federal agencies. Among other requirements, the law limits how agencies collect, use, and disclose records containing personally identifiable information and generally restricts access to individuals with a legitimate need to know. The Act also provides certain rights to individuals regarding records maintained about them by the federal government.

Understanding What Federal Employee Information May Be at Risk

Federal personnel systems often contain a wide range of sensitive personal and employment-related information collected throughout an employee’s career. Depending on the agency and the nature of an employee’s position, these records may include Social Security numbers, dates of birth, home addresses, payroll and benefits information, employment histories, retirement records, and background investigation materials.

Because these records often contain enough information to identify an individual and reveal significant personal and professional details, unauthorized access may increase the risk of identity theft, financial fraud, and other privacy concerns.

The information contained in federal personnel records is valuable not only to government agencies but also to individuals who may seek to misuse it. The improper disclosure of personal information may expose employees to privacy violations, reputational damage, or unwanted contact. For certain federal employees, including those in positions involving national security responsibilities or security clearances, unauthorized access to background investigation materials or other sensitive records may raise additional security concerns.

Signs Your Personal Information May Have Been Compromised

One of the most common ways employees learn that their personal information may have been compromised is through an official notification from a government agency or employer.

These notifications often describe the types of information involved, explain what steps the agency is taking to address the issue, and may offer credit monitoring or identity protection services. Employees should carefully review any such communications and follow recommended protective measures, as early action can help reduce the risk of identity theft and other forms of misuse.

Employees should also remain alert to signs of unusual activity that may indicate their information has been compromised. Unexpected charges or withdrawals from financial accounts, unfamiliar credit inquiries, notices regarding accounts or loans that were never opened, and an increase in suspicious emails, text messages, or phishing attempts can all be warning signs. Because compromised information may be used months or even years after an incident occurs, monitoring financial accounts and credit reports on a regular basis can be an important part of protecting personal information.

In some situations, concerns may arise within the workplace itself. For example, an employee may learn that personnel records were accessed by individuals who had no legitimate business need to review the information or discover that sensitive details have been shared beyond authorized personnel.

Immediate Steps Federal Employees Should Take

If a federal employee believes their personal information may have been compromised, taking prompt and organized action can help reduce the risk of further harm. One of the first steps is to document everything related to the incident. Employees should save any agency notifications regarding unauthorized access or a potential data breach, retain relevant emails and correspondence, and create a timeline of important events, including when they first learned of the issue and any actions they took in response. Maintaining thorough records can be helpful if questions arise later regarding the scope of the incident or the employee’s efforts to address it.

Employees should also carefully review their financial accounts for signs of unauthorized activity. Monitoring bank accounts, credit card statements, and other financial records can help identify suspicious transactions before they become more serious problems. If unfamiliar charges, withdrawals, or account changes are discovered, they should be reported to the appropriate financial institution as soon as possible.

In addition, employees may want to review their credit reports from the major credit bureaus for unfamiliar accounts, unexpected credit inquiries, or other indicators of identity theft. Depending on the circumstances, placing a fraud alert on credit files or implementing a credit freeze may provide additional protection against unauthorized use of personal information.

If an agency notifies employees that their information may have been compromised, it is important to follow any guidance provided. Agencies may offer credit monitoring, identity theft protection, or other support services that can help detect misuse of personal information. Employees should also consider updating passwords, enabling multi-factor authentication, and completing any recommended security measures.

Special Considerations for Security Clearance Holders and Federal Contractors

Federal employees and contractors who hold security clearances may face additional concerns when their personal information is compromised. Background investigations and security-related records often contain highly sensitive personal information and unauthorized access to this information may create risks beyond traditional identity theft and could raise concerns about the security and integrity of records used to evaluate an individual’s eligibility for access to classified information.

Depending on the nature of the incident, security clearance holders may also have reporting obligations under their agency’s security policies or procedures. Employees who learn that their personal information has been compromised should consider whether the incident may need to be reported to a security officer, facility security officer, or other designated security personnel.

Because reporting requirements can vary among agencies and contractors, it is important to follow agency-specific guidance and reporting protocols. Prompt reporting and compliance with applicable procedures can help protect both the individual and the agency while ensuring that any potential security concerns are addressed appropriately.

When Should You Contact an Attorney?

Federal employees may wish to consult an attorney if they believe their personnel records were improperly accessed or disclosed, particularly when the circumstances surrounding the incident are unclear or the agency has not provided sufficient information regarding the scope of the breach.

Legal guidance may also be appropriate when a privacy incident results in identity theft, financial losses, or other tangible harm. In some situations, employees may have concerns that an agency has failed to adequately investigate or address unauthorized access to sensitive information.

Seeking legal counsel may also be prudent when improperly disclosed information affects an employee’s career, professional reputation, security clearance, or future employment opportunities. An attorney experienced in federal employment and privacy matters can help evaluate the facts, explain potential legal options, assist with communications with the agency, and determine whether additional action may be warranted.

Remain Vigilant in a Digital Environment

As federal agencies continue to rely on digital systems to store and manage employee information, protecting personal data remains an important responsibility. While agencies are expected to maintain appropriate safeguards, federal employees should remain vigilant for signs of unauthorized access, act promptly if concerns arise, and understand the resources available to them. By taking proactive steps and seeking guidance when appropriate, employees can better protect themselves from the potential consequences of a privacy breach.

If you have questions about your rights as a federal employee, Tully Rinckey’s team of dedicated federal employment attorneys is available to assist. Please call 8885294543 to schedule a consultation, or schedule a consultation online.

Michael C. Fallings focuses his practice on federal sector labor and employment law. Michael has extensive experience litigating cases on behalf of employees at the U.S. Merit Systems Protection Board (MSPB), Equal Employment Opportunity Commission (EEOC), and in both state and federal courts. He also has experience negotiating settlement agreements on behalf of federal employees. Michael has received numerous awards, including the 2026 Lawdragon 500 Leading Litigators in America, LawDragon 500 the Next Generation (2024-25), Lawdragon 500 Leading Civil Rights & Plaintiff Employment Lawyers (2025), National Black Lawyers Top 40 under 40, and Super Lawyers Rising Star (2023).