TOPEKA (November 29, 2011) A company accused of leaving
thousands of sensitive employees records in an open dumpster in a
Wichita alley will pay $200,000 to the state and take steps to
protect employee privacy in the future, Kansas Attorney General
Derek Schmidt announced today. Schmidt entered into a settlement
this week with the management corporation for Lone Star Steakhouse,
known as LS Management, Inc. The Attorney Generals office alleged
that on or about March 21, 2011, the company threw thousands of
employee files containing confidential employee records into
unsecured dumpsters in an alley in Wichita and that the improper
disposal violated state and federal privacy laws. The dumpsters
were either picked up and taken to a recycling company or left
unsecured overnight. Many of the files contained employee records
such as credit reports, social security numbers, addresses, phone
numbers and other personal identifying information. Companies that
collect sensitive personal information have a legal duty to keep
that information secure and to dispose of it properly, Schmidt
said. Dumping records in an open dumpster in an alley does not
satisfy that legal duty. Schmidt said the settlement, which was
executed this week, will protect employees by requiring the company
to take steps to prevent future privacy law violations. The
Consumer Protection Division of the Attorney Generals office
negotiated the settlement, which is the largest of its kind in
Kansas history.
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