---
kind: "section"
citation: "10 U.S.C. § 4662"
title: "10"
title_heading: "Armed Forces"
number: "4662"
heading: "Prohibition on the transfer of certain data on employees of the Department of Defense to third parties"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/4662"
units:
  - "Subtitle A — General Military Law"
  - "Part V — Acquisition"
  - "Subpart H — Contract Management"
  - "Chapter 363 — Prohibition and Penalties"
---

# §4662. Prohibition on the transfer of certain data on employees of the Department of Defense to third parties

- (a) **In General.—** Each contract entered into by the [Department](/usc/10/101.md?p=a-6) of Defense on or after the date of the enactment of this section shall include a provision prohibiting the contractor and each subcontractor under such contract from selling, licensing, or otherwise transferring covered individually identifiable [Department](/usc/10/101.md?p=a-6) employee data to any individual or entity other than the Federal Government, except to the extent required to perform such contract or a [subcontract](/usc/10/3701.md?p=2) under such contract. This provision does not apply in circumstances where the transfer of such data would otherwise be authorized by law.
- (b) **Waiver.—** The [Secretary](/usc/10/4951.md?p=3) of Defense may waive the requirements of [subsection (a)](#a) with respect to the sale, licensing, or other transfer of covered individually identifiable [Department](/usc/10/101.md?p=a-6) employee data if the [Secretary](/usc/10/4951.md?p=3) determines that such waiver—
  - (1) appropriately considers the privacy risks to the employee of the [Department](/usc/10/101.md?p=a-6) of Defense to which such data relates; and
  - (2) is necessary in the interest of [national security](/usc/10/801.md?p=16).
- (c) **Report.—** Not later than January 15, 2026, and annually thereafter for four years, the Under [Secretary](/usc/10/4951.md?p=3) of Defense for Acquisition and Sustainment, shall submit to the [congressional defense committees](/usc/10/101.md?p=a-16) a report on the use of the waiver authority under [subsection (b)](#b) for the fiscal year preceding the date of submission of the report. The report shall include, for each use of the waiver—
  - (1) the specific justification for providing the waiver;
  - (2) an identification of the contractor or subcontractor that is the subject of the waiver request; and
  - (3) an identification of the purpose of the sale, licensing, or transfer of covered individually identifiable [Department](/usc/10/101.md?p=a-6) employee data that is the subject of the waiver request.
- (d) **Definitions.—** In this section:
  - (1) The term “covered individually identifiable [Department](/usc/10/101.md?p=a-6) employee data” means individually identifiable [Department](/usc/10/101.md?p=a-6) employee data obtained by a contractor or subcontractor described in [subsection (a)](#a).
  - (2) The term “individually identifiable [Department](/usc/10/101.md?p=a-6) employee data” means information related to an employee of the [Department](/usc/10/101.md?p=a-6) of Defense, including a member of the [Armed Forces](/usc/10/101.md?p=a-4), that—
    - (A) identifies such employee; or
    - (B) which may be used to infer, by either direct or indirect means, the identity of such an employee to whom the information applies.

## Source credit

(Added Pub. L. 118–31, div. A, title VIII, § 803, Dec. 22, 2023, 137 Stat. 312; amended Pub. L. 118–159, div. A, title VIII, § 836, Dec. 23, 2024, 138 Stat. 1987.)

## Notes

### Editorial Notes

### References in Text

The date of the enactment of this section, referred to in subsec. (a), is the date of enactment of Pub. L. 118–31, which was approved Dec. 22, 2023.

### Amendments

2024—Subsec. (a). Pub. L. 118–159, § 836(1), struck out “and that would be permissible pursuant to statute or guidance from the Director of the Office of Management and Budget” after “or a subcontract under such contract” and inserted at end “This provision does not apply in circumstances where the transfer of such data would otherwise be authorized by law.”

Subsec. (b). Pub. L. 118–159, § 836(2), amended subsec. (b) generally. Prior to amendment, text read as follows: “The Secretary of Defense may waive the requirements of subsection (a) with respect to a sale, licensing, or other transfer of covered individually identifiable Department employee data if the Secretary determines that such waiver is appropriate.”

Subsecs. (c), (d). Pub. L. 118–159, § 836(3), (5), added subsec. (c) and redesignated former subsec. (c) as (d).

Subsec. (d)(1). Pub. L. 118–159, § 836(4), amended par. (1) generally. Prior to amendment, par. (1) defined covered individually identifiable Department employee data.