What Is a HIPAA Violation in the Workplace? Examples and Penalties

Definition of HIPAA Violations

A HIPAA violation is any action or omission by a Covered Entity or its Business Associate that compromises the privacy, security, or permitted use of Protected Health Information (PHI). In the workplace, that typically means impermissible PHI disclosure or a failure to implement required administrative, physical, or technical safeguards.

Not every employer activity involves HIPAA. Employment records your company keeps as an employer are not PHI. HIPAA applies when your organization is a Covered Entity (health plan, healthcare provider transmitting ePHI, or clearinghouse), a plan sponsor administering a group health plan, or a Business Associate handling PHI for a client. If those roles exist, your workforce must follow HIPAA rules at work and during remote work.

Actions that constitute violations

• Using or disclosing PHI without a valid authorization or other HIPAA-permitted basis (including exceeding the minimum necessary standard).
• Failing to provide individuals timely access to their PHI or an accounting of disclosures.
• Insufficient safeguards such as missing risk analysis, weak access controls, or unencrypted transmissions where encryption is reasonable and appropriate.
• Lack of required Business Associate Agreements before sharing PHI with vendors.
• Failure to investigate, mitigate, and notify after a breach within required timelines.
• Policies, procedures, or documentation gaps that hinder HIPAA Enforcement readiness.

Common Workplace Examples

• Misdirected emails, faxes, or messages that expose PHI to unauthorized recipients.
• Discussing patient details in public spaces (elevators, cafeterias) where others can overhear.
• Viewing records out of curiosity (“snooping”) or sharing login credentials to access ePHI.
• Posting or texting identifiable patient photos or stories on social media or group chats.
• Leaving charts, discharge papers, or prescription labels where visitors or coworkers can see them.
• Using personal devices or cloud storage for PHI without approved safeguards or mobile device management.
• Improper disposal of documents or media containing PHI (e.g., trash instead of shredding or secure wiping).
• Failing to verify identity before releasing information, leading to impermissible PHI disclosure.
• Letting a vendor access PHI before a signed Business Associate Agreement is in place.
• Remote work lapses: unattended screens, unsecured Wi‑Fi, or downloading PHI to local drives.

Civil Penalties for Violations

HIPAA civil penalties follow a four-tier structure based on culpability and corrective action: (1) No Knowledge, (2) Reasonable Cause, (3) Willful Neglect—Corrected, and (4) Willful Neglect—Not Corrected. Each violation can be assessed per record and per day until corrected, with annual caps that are adjusted for inflation.

How OCR determines penalty amounts

• Nature, scope, and duration of the violation and number of individuals affected.
• Type and sensitivity of PHI, and the risk or actual harm caused.
• Level of cooperation, mitigation efforts, and timeliness of breach reporting.
• History of compliance and prior corrective actions or settlements.
• Financial condition and the organization’s size and resources.

Outcomes often include corrective action plans, ongoing monitoring, and settlement agreements in addition to monetary penalties. State attorneys general may also bring civil actions related to HIPAA violations.

Criminal Penalties for Violations

Criminal penalties apply when someone knowingly obtains or discloses PHI in violation of HIPAA. Penalties escalate when done under false pretenses or with intent to sell, transfer, or use PHI for personal gain or malicious harm.

• Knowingly obtaining/disclosing PHI: fines up to $50,000 and up to 1 year imprisonment.
• Under false pretenses: fines up to $100,000 and up to 5 years imprisonment.
• For commercial advantage, personal gain, or malicious harm: fines up to $250,000 and up to 10 years imprisonment.

Individuals (including employees and supervisors) can be prosecuted, and additional federal or state charges may apply depending on the facts.

Prevention Strategies

• Perform a comprehensive risk analysis and maintain a risk management plan with prioritized remediation.
• Apply least-privilege access, role-based controls, unique IDs, and multi-factor authentication for systems containing ePHI.
• Encrypt PHI at rest and in transit where appropriate, and use secure messaging rather than SMS or personal email.
• Implement device management for laptops and mobile devices, including inventory, remote wipe, and patching.
• Adopt data loss prevention, audit logging, and alerting for anomalous access and large data exports.
• Use standardized procedures for identity verification, minimum necessary disclosures, and verification of recipient details.
• Execute and maintain Business Associate Agreements; evaluate vendor security regularly.
• Establish an incident response plan covering containment, investigation, documentation, and breach notification.
• Define and enforce a sanctions policy for noncompliance to deter willful neglect.
• Secure physical environments: badge controls, visitor logs, clean desk policy, and locked storage for records and media.

Employee Training Requirements

Provide HIPAA privacy training to all workforce members whose roles involve PHI and security awareness training for anyone accessing systems. Train new hires before they handle PHI, update training when policies or job duties change, and refresh at reasonable intervals to maintain awareness.

What effective training includes

• Organization-specific policies and procedures, minimum necessary, and how to handle PHI disclosures.
• Security best practices: phishing recognition, password hygiene, MFA, safe remote work, and mobile device use.
• How to report incidents quickly and accurately, including suspected breaches.
• Scenario-based exercises tailored to clinical, billing, customer service, and IT workflows.
• Documentation of attendance, content, dates, and assessments to demonstrate compliance.

Compliance Monitoring

Operationalize compliance with ongoing oversight. Monitor access logs, investigate anomalies, and conduct periodic internal audits of disclosures, user permissions, and high-risk workflows. Validate that corrective actions are completed and effective.

• Maintain documentation: policies, risk analyses, evaluations, Business Associate inventories, and training logs.
• Test backups, disaster recovery, and incident response through drills and tabletop exercises.
• Track metrics (e.g., unauthorized access attempts, time-to-remediate, training completion) and report to leadership.
• Review breach notification processes to ensure notices are accurate and sent within required timeframes.
• Perform vendor due diligence and periodic reviews aligned with Business Associate Agreements.

Bottom line: HIPAA violations in the workplace stem from impermissible PHI disclosure or weak safeguards. Strong policies, targeted training, vigilant monitoring, and timely remediation reduce risk and keep you prepared for HIPAA enforcement.

FAQs

What constitutes a HIPAA violation in the workplace?

A HIPAA violation occurs when a Covered Entity or Business Associate uses, accesses, or discloses Protected Health Information without a permissible basis, or fails to implement required safeguards and procedures. Examples include snooping in records, misdirected emails with PHI, lack of a Business Associate Agreement, or missing breach notifications.

What are the consequences of a HIPAA violation?

Consequences range from corrective action plans and civil monetary penalties—tiered by culpability from No Knowledge to Willful Neglect—to criminal charges for egregious misconduct. Organizations may also face audits, reputational damage, and operational costs to investigate, notify, and remediate.

How can employers prevent HIPAA violations?

Identify where PHI exists, complete a risk analysis, and enforce least-privilege access and encryption. Train your workforce, execute Business Associate Agreements, monitor for anomalous access, document everything, and respond quickly to incidents. Consistent governance turns compliance from a one-time project into a reliable daily practice.