PII & U.S. Data Protection Laws: What Small Businesses Must Know

Last week, we introduced the concept of Data Protection Laws—regulations designed to govern the secure handling of certain types of sensitive data. One of the most frequently regulated categories is Personally Identifiable Information (PII). According to the U.S. General Services Administration, PII is “information that can be used to distinguish or trace an individual’s identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual.” (GSA.gov)

Examples of PII include an individual’s name combined with sensitive data like Social Security numbers, driver’s license numbers, credit card details, or bank account information. Businesses that collect or store this type of data are legally responsible for protecting it—and failure to do so could lead to serious consequences.

Are You Subject to Data Protection or Breach Notification Laws?

Unlike many European countries, the U.S. does not have a single, comprehensive federal data protection law. Instead, the regulatory landscape is made up of sector-specific laws such as HIPAA for healthcare or GLBA for financial institutions. Additionally, 48 U.S. states currently enforce their own breach notification laws that require organizations to inform affected individuals and, in many cases, government agencies when PII has been compromised.

That means even small businesses that operate in niche markets may be subject to data privacy laws based on the type of data they collect and where their clients reside. Non-compliance can lead to costly fines, legal penalties, and reputational damage.

Why PII Compliance Matters for Small Businesses

If you handle customer data—whether for marketing, billing, onboarding, or service delivery—you’re likely collecting personally identifiable information. As a business owner, you have a legal and ethical responsibility to:

Understand what types of data are classified as PII
Secure those data assets using best practices in cybersecurity
Comply with all applicable state and federal privacy laws
Establish breach response protocols and notification procedures

Ignorance is not a defense. If your organization stores PII—especially for clients or leads from other states or countries—you must stay informed and implement strong data protection policies. Failure to do so can result in significant business disruptions.

Need Help with PII Compliance and Cybersecurity?

Tobin Solutions can help you determine whether your business is subject to data protection or breach notification laws. Our team offers comprehensive cybersecurity services for small and midsize businesses, including vulnerability assessments, data protection plans, and incident response protocols tailored to your industry.

Don’t wait until it’s too late. Contact Tobin Solutions today for expert guidance on managing and protecting your sensitive business data.

Email: info@tobinsolutions.com
Phone: 414-443-9999
Website: https://tobinsolutions.com