The Social Security Administration in their publication "SSA Publication No. 05-10064", July 1997, regarding business requests for social security numbers states:
"If a business or other enterprise asks for your Social Security number, you can refuse to give it to them. They may have another method of keeping their records. However, this may mean doing without the benefit or service for which your number was requested. Giving your Social Security number is voluntary, even when you are asked for the number directly.
"If requested, you should ask- "- why your Social Security number is needed; "- how your Social Security number is going to be used; "- what law requires you to give your Social Security number; and "- what are the consequences if you refuse to give your Social Security number. "Answers to these questions will help you decide whether you want to give your Social Security number to get the benefit or service. The decision is yours."
The Social Security Administration recognizes and acknowledges the fact that in some cases individuals may not be able to "buy or sell" if they refuse to give out their social security number. However, many businesses will agree to use a number other than a social security number if asked to do so.
If you decide to resist giving out your social security number to a private company but you would like to do business with them anyway, you need to determine why they want your number. The two most likely answers are: 1) They simply want a unique nine digit number to enter into a computer database so that they can identify and distinguish you from other customers within their record keeping system; or, 2) They want to obtain a "consumer credit report" for use in determining whether they want to extend you credit. In the latter case, the business may have a contract with a credit-reporting agency to "exchange" information about you and your account, typically using a SSN. Both of these "reasons" can be satisfied, upon agreement, without necessitating the use of a SSN. A credit report can be obtained without using a SSN.
Once it is determined exactly why the business wants to obtain a SSN, then determine whether an alternative arrangement can be worked out.
The "simple" answer to the question as to whether a person must give their social security number to engage in some business transaction is "NO". But the business may refuse to conduct business with the resistor. The options here are to either: 1) give out your social security number; 2) do without the goods, benefit, service, or access; 3) persuade the other party to amend or modify the contractual terms and conditions; or, 4) sue the other party in court - the grounds for such suit would have to be determined by tort merits of the complaint (perhaps discrimination).
2. Do I have to give my employer my SSN?
Answer: No. Employment is a form of contractual agreement. Generally, the same points made in the previous answer regarding contractual agreements also apply here.
If the terms of employment include a requirement that the employee must supply their social security number then there are basically four options available: 1) supply the requested SSN; 2) ask to work out another arrangement where the SSN isn't required; 3) don't work for that company; or, 4) sue the business in court.
An employee or job applicant may be able to receive protection from coerced submission of a SSN for employment purposes by relying on federal anti-discrimination laws. The Civil Rights Act of 1964 Section 703(a)(1), Title VII, 42 U.S.C. Section 2000e-2(a)(1) makes it unlawful to discriminate against any employee or perspective employee on the bases of his or her religion. (This is in addition to the basic Constitutional First Amendment protection of the free exercise of religion.)
In 1992 a complaint was filed with the Equal Employment Opportunity (EEOC) by a Mr. Hanson, wherein he claimed as a "Christian Fundamentalist" he could not obtain or use a SSN. The EEOC filed suit against the business that fired Mr. Hanson on his behalf. The suit claimed that firing Mr. Hanson due to his not having or getting a SSN constituted discrimination due to his religious belief. The business claimed that they were required to either force Mr. Hanson to get a SSN or fire him because they were required by certain IRS Code sections and regulations to report all employees' SSNs on certain IRS forms. The business also responded that it was required by federal law to report all employees' SSNs to the Immigration and Naturalization Service (INS).
The EEOC countered that the only requirement imposed upon a businesses by the various tax laws was that employers must "request" an employee's or potential employee's taxpayer identification number, and that there was be no penalty for a business not succeeding in obtaining one. The EEOC, itself a federal government agency, stated in its "Plaintiff's Response to Defendant's Motion to Dismiss" that:
"the Internal Revenue Code and the regulations promulgated pursuant to the code do not contain an absolute requirement that an employer provide an employee social security number to the IRS."
The EEOC further argued that employers were permitted to use any one of several acceptable forms of identification and employment eligibility verification other than a SSN and still comply with the Immigration Reform Act requirements.
The Court denied the employer's motion to dismiss the complaint. A settlement was later reached in which Mr. Hanson was awarded back pay. The Court's final decree setting out the terms of the settlement stated that: "The [employer] shall be permanently enjoined from terminating an employee for failure to provide a social security number because of religious beliefs."
A sincerely held religious belief may serve as a valid basis for objecting to requirements for a social security number for employment purposes. A business could be found guilty of discrimination for taking adverse action against an employee or applicant due to their refusal to use or obtain a SSN.
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