New York City May Ban Credit Checks by Employers

Written By ESR News Blog Editor Thomas Ahearn New York City Council members are considering legislation – Introductory Bill Number 261 (“Int. No. 261”) – that would amend the administrative code of the city “in relation to prohibiting discrimination based on one’s consumer credit history” and prevent employers from using credit checks in employment decisions. …

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Starting July 1 New Colorado Law Specifies Permissible Use of Credit Reports by Employers

A new law passed by the Colorado General Assembly that takes effect July 1, 2013 – SB13-018, the “Employment Opportunity Act” – will specify the permissible use of credit reports by employers. The Act outlines the purposes for which consumer credit information such as consumer credit reports and credit scores can be used by private …

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Delaware Bill Would Prohibit Employers from Considering Criminal Record and Credit History of Applicants before Job Offer

Lawmakers in Delaware have introduced legislation – House Bill No. 167 – that would prohibit public employers in the state from considering the criminal record or credit history of an applicant before making a conditional job offer. The bill would also restrict the authority of state and local government agencies to conduct criminal background checks …

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Nevada Becomes Tenth State to Prohibit Use of Credit Reports by Employers for Employment Purposes

With Governor Brian Sandoval signing Senate Bill 127 (SB 127) into law, Nevada has now become the tenth state in the U.S. to prohibit employers from conditioning employment on a consumer credit report or other credit information with few exceptions. The full text of Nevada SB 127 – which goes into effect on October 1, 2013 …

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Colorado Employment Opportunity Act Specifies Permissible Use of Credit Reports by Employers Starting July 1

Governor of Colorado John Hickenlooper has signed into law a bill passed by the Colorado General Assembly – SB13-018, the “Employment Opportunity Act” – that specifies the purposes for which consumer credit information such as consumer credit reports and credit scores can be used by private sector employers or potential employers with four or more …

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Equal Employment for All Act Would Prohibit Employers from Using Credit Report Checks when Hiring

Congressman Steve Cohen (D-Tennessee-09) has introduced legislation in the U.S. House of Representatives – H.R. 645, the ‘Equal Employment for All Act’ – that would amend the Fair Credit Reporting Act (FCRA) to prohibit employers from using credit report checks and bankruptcy filings when hiring or making adverse employment decisions. Under H.R. 645, some exceptions …

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FTC Study on Credit Report Accuracy Finds One in Five Consumers has Error on Their Credit Reports

A Federal Trade Commission (FTC) study of accuracy in the U.S. credit reporting industry has found that one in five consumers – an estimated 40 million Americans, according to a ‘60 Minutes’ report on the FTC study – had an error on at least one of their three major credit reports while five percent had …

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Consumer Financial Protection Bureau Begins Accepting Credit Reporting Complaints from Consumers

The Consumer Financial Protection Bureau (CFPB) has begun to accept consumer complaints about credit reporting, marking the first time consumers will receive individual-level credit reporting complaint assistance at the federal level. The CFPB already handles complaints on credit cards, mortgages, bank accounts, and consumer and private student loans. To file a credit reporting complaint, consumers …

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EEOC Must Testify On Own Use of Criminal Background Checks and Credit Histories for Employment Screening

A federal district Court in Maryland has ruled that an employer sued by the Equal Employment Opportunity Commission (EEOC) for alleged discriminatory use of criminal background checks and credit histories in hiring may compel the EEOC the testify regarding the agency’s own use of criminal records and credit information for employment screening. The ruling EEOC …

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Credit Background Checks of Applicants Not Used by More than Half of Organizations According to Survey

A survey from the Society for Human Resource Management (SHRM) “Background Checking — The Use of Credit Background Checks in Hiring Decisions” indicates that more than half of the responding organizations – 53 percent – do not conduct credit background checks on any of their job candidates, a noticeable  increase from 40 percent in 2010 and …

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