According to Right to Financial Privacy Act, the bank is required to notify the customer when someone is requesting account records such as deposition subpoena for records. My question is that when the deposition subpoena of records is for an employee's record, are we require to notify the employee? My CFO does not think it is necessary, but I disagree since we are disclosing someone's personal information so the person should be aware of. Any help is much appreciated.

You have a Federal agency subpoenaing employment records?

No, it isn't. If customer notice is required, the government, not the bank, is required to provide it. The bank is only required to get a certification from the government that it has fulfilled its legal requirements prior to turning over the records. If the feds are demanding financial records, you handle employee records just like you do those of other customers.

It is a Deposition Subpoena for Production of Business Records from the defendant's attorney seeking a past employee's employment records.

Then it has nothing to do with the RFPA. That act only applies to information sought by a Federal governmental agency. You need to be visiting with your legal counsel.