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Apply Sensitivity Labels to Microsoft 365 Documents
Why Use Sensitivity Labels?
Sensitivity labels help protect company information by classifying documents according to their level of sensitivity and applying the appropriate security controls.
Apply a Sensitivity Label
Step 1: Open Your Document
Open the Microsoft 365 document you want to classify.
Step 2: Select a Label
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On the Home tab, click Sensitivity.
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Choose the appropriate label from the list.
Example:
Home > Sensitivity > Confidential
Step 3: Save the Document
Save the document to ensure the label is applied. 
Choose the Right Label
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Label
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Use For
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Public
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Public data includes, but is not limited to: Advertising, product and service information, directory listings, published research, presentations or papers, job postings, press releases.
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Internal
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Internal data includes, but is not limited to: Budget and salary information, personal cell phone numbers, departmental standard operating practices, internal memos, incomplete or unpublished research. While some forms of internal data can be made available to the public, the data is not freely disseminated without appropriate authorization.
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Confidential
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Confidential/sensitive data includes, but is not limited to: Passport data, certain research data (e.g., proprietary or otherwise protected), Faculty/Staff data that are not open to inspection according to state statute, and Student data that are not designated as directory information.
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Highly Restricted
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Highly restricted data includes, but is not limited to: Social Security Numbers, payment card numbers, protected health information (HIPAA), substance use disorder patient medical records (42 CFR Part 2 data), and restricted information protected by nondisclosure agreements, restricted research data, and critical IT infrastructure data.
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Verify the Current Label
You can check the applied label by:
- Looking at the Sensitivity button on the ribbon
- Selecting File > Info
- Viewing any watermark, header, or footer added by the label
Change a Label
If document content changes:
- Click Sensitivity.
- Select a new label.
- Provide justification if prompted.
- Save the document.
Note: Downgrading or removing a label may require business justification.
What Happens When a Label is Applied?
Depending on the label, Microsoft may automatically:
- Encrypt the document
- Restrict access to authorized users
- Add watermarks
- Add headers or footers
- Prevent printing, editing, or forwarding
Best Practices
✅ Apply a label when creating a document.
✅ Review the label before sharing.
✅ Use the highest appropriate classification when unsure.
✅ Reclassify documents if the content changes.
✅ Follow company data protection policies.
Need Help?
Can't See the Sensitivity Button?
- Verify you're signed in with your work account.
- Restart Word.
- Update Microsoft 365.
- Contact Enterprise Data Management Support Services ticket queue at : Request Form - DLP Labeling.
Unable to Change a Label?
- The document may be protected by organizational policy.
- Additional approval may be required.
Remember:
Label documents before saving, sharing, or collaborating to help protect sensitive company information.