National Directory of New Hires Law and Legal Definition
The National Directory of New Hires (NDNH) is a database that stores personal and financial data on almost every working American. The database also contains information regarding those receiving unemployment compensation. Contrary to its name, the National Directory of New Hires includes more than just information on new employees.
The NDNH includes information on:
1. All newly hired employees, compiled from reports submitted by state authorities and federal employers.
2. The quarterly wage reports of existing employees (in Unemployment Compensation (UC)-covered employment).
3. Unemployment compensation claims.
State Directories of New Hires (SDNHs), State Workforce Agencies (SWAs), and other federal agencies provide help in populating and updating the NDNH.
The NDNH when originally established in 1996 was used to help states locate noncustodial parents living in a different state so that child support payments could be withheld from that parent’s paycheck. However, now the NDNH conducts additional programs to help prevent or end fraud, collect overpayments, or assure that program benefits are correct.