News & Analysis as of

Employee Credit Checks

Bowditch & Dewey

Proposed Changes in Massachusetts that Would Bar Use of Credit Reports by Employers

Bowditch & Dewey on

On March 14, 2024, the Massachusetts House of Representatives passed legislation that would prohibit employers from obtaining or using a true credit report for employment purposes. The bill is expected to pass the Senate and...more

Littler

Massachusetts Latest State Expected to Restrict Access to Credit Reports for Employment Purposes

Littler on

On March 14, 2024, the Massachusetts House of Representatives passed legislation that would add a new provision to the Massachusetts Consumer Protection law and would bar the use of true credit reports for employment...more

Burns & Levinson LLP

If You Use Background Checks to Vet New Employees, Don’t do This….

Burns & Levinson LLP on

While every employer engages in some due diligence when considering a new hire, if your company routinely, or even occasionally, obtains a “consumer report” as a way to vet candidates, it behooves you to understand the rules...more

FordHarrison

The New Captain America

FordHarrison on

How to Hire a Super Hero - An employer subject to the Fair Credit Reporting Act (FCRA) and state “mini-FCRA” laws, which are generally more restrictive than the FCRA, can obtain investigative consumer reports, i.e.,...more

Epstein Becker & Green

Philadelphia Expands Ordinance Limiting Employer Use of Credit Checks

On January 20, 2021, Mayor Jim Kenney signed legislation amending the Philadelphia Fair Practices Ordinance, which prohibits covered employers from procuring, considering, or otherwise using a job applicant’s or employee’s...more

Jackson Lewis P.C.

Ninth Circuit: FCRA Does Not Require Disclosure To Be Distinct In Time from Other Employment Documents

Jackson Lewis P.C. on

The Ninth Circuit recognized that plaintiff’s argument was novel but was thwarted by the statute itself. Plaintiff below, argued on behalf of a class, that the company violated the Fair Credit Reporting Act (FCRA) by...more

Jackson Lewis P.C.

New Puerto Rico Law Limits Employers’ Use Of Credit Reports In Employment Decisions

Jackson Lewis P.C. on

Puerto Rico has enacted legislation to limit the use of credit reports in making employment decisions. An “Act to Protect Employee’s Credit Information” (PR Act. No. 150 of October 8, 2019) prohibits employers from...more

Faegre Drinker Biddle & Reath LLP

Congress Considers Restricting Credit Checks During Hiring

New federal restrictions on hiring practices could be around the corner. Last month, the U.S. House Committee on Financial Services passed a bill titled “Restricting the Use of Credit Checks for Employment Decisions Act”...more

Parker Poe Adams & Bernstein LLP

Even if Credit Report Is Accurate, Federal Law Requires Notice of Right to Dispute

The federal Fair Credit Reporting Act (FCRA) provides protections for persons subject to “consumer reports” provided by third parties, including criminal background and credit checks mandated by employers. The employee or...more

Seyfarth Shaw LLP

Using Credit Histories In Employment Decisions: An Overview Of Divergent State & Local Requirements

Seyfarth Shaw LLP on

Seyfarth Synopsis: Over the past few years, restrictions regarding the use of credit checks by employers on applicants and employees have been passed at various state and municipal levels, and the federal government has...more

Proskauer - Law and the Workplace

NOW IN EFFECT: D.C. Law Restricts Employers From Making Credit Check Inquiries

On April 7, 2017, the D.C. Fair Credit in Employment Amendment Act of 2016 (the “Act”) (L21-0256) took effect as Congress’s review period expired. As we have previously reported, the Act amends the D.C. Human Rights Act to...more

Seyfarth Shaw LLP

D.C. Fair Credit in Employment Amendment Act Prohibits Inquiry Into Prospective and Current Employees’ Credit Information

Seyfarth Shaw LLP on

The District of Columbia has become the newest jurisdiction to prohibit employers from inquiring into their job applicants’ and current employees’ credit information. ...more

Proskauer - Law and the Workplace

D.C. Mayor Signs Bill Restricting Employers From Making Credit Check Inquiries

On February 15, 2017, Mayor Muriel Bowser signed the Fair Credit in Employment Amendment Act of 2016 (the “Act”). As previously reported, the Act, if it becomes law, will amend the D.C. Human Rights Act to prohibit employers...more

Littler

District of Columbia Mayor Signs Law Restricting Employers from Using Credit Information in Employment Decisions

Littler on

On February 15, 2017, District of Columbia Mayor Muriel Bowser signed a bill prohibiting, with limited exceptions, employers’ use of or obtaining a job applicant's or employee's credit information for employment purposes. ...more

Conn Maciel Carey LLP

D.C. Joins other States in Banning Credit Checks in the Hiring Process

Conn Maciel Carey LLP on

The D.C. City Council recently passed the Fair Credit in Employment Amendment Act (“the Act”), which now strictly limits an employer’s ability to inquire into an applicant’s credit history as a basis for a hiring decision. ...more

Seyfarth Shaw LLP

What To Do About Employee Thieves—Catch Them If You Can!

Seyfarth Shaw LLP on

Seyfarth Synopsis: When employee theft occurs, employers must be cautious in investigating, avoiding self-help, and in deciding if and how to terminate the offending employee. Companies work hard to hire trustworthy...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New Orleans Adopts Legislation Prohibiting City Contractors From Conducting Employment-Related Credit Checks

The New Orleans City Council recently approved legislation making it unlawful for city contractors to seek or use the consumer credit history of a current or prospective employee for any decision regarding the hiring or...more

Seyfarth Shaw LLP

Philadelphia Restricts Employers’ Use of Credit History for Employment Purposes

Seyfarth Shaw LLP on

Seyfarth Synopsis: Effective July 7, 2016, employers in Philadelphia are prohibited from procuring or using an applicant’s or employee’s credit history for employment purposes. On June 7, 2016, Philadelphia Mayor...more

Proskauer - Law and the Workplace

Philadelphia, PA Bans Use of Credit Information in Employment Decisions

Effective as of July 7, 2016, amendments to the Philadelphia, PA Fair Practices Ordinance make it an unlawful discriminatory practice for an employer to procure, seek to procure, or use an applicant’s or employee’s credit...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

It’s (Not So) Sunny in Philadelphia [for Employers]: City Enacts New Prohibitions on Credit Checks

A new Philadelphia ordinance amending the City’s Fair Practices Act goes into effect on July 7, 2016. The amendment severely limits an employer’s ability to procure and use credit information on most applicants and employees...more

Jackson Lewis P.C.

Philadelphia Ordinance Restricting Credit Checks on Job Applicants, Employees Effective July 7

Jackson Lewis P.C. on

Effective July 7, 2016, a new City of Philadelphia ordinance will restrict the use of credit checks and credit-related information. With certain exemptions, the ordinance prohibits covered employers in Philadelphia from...more

Genova Burns LLC

Your Credit is No Good Here: Philadelphia Becomes Latest Jurisdiction to Make It Unlawful to Use Credit Information in Employment

Genova Burns LLC on

On June 7, 2016, Philadelphia Mayor Jim Kenney signed into law Philadelphia Bill No. 160072, which amends Philadelphia’s “Fair Practices Ordinance: Protections Against Unlawful Discrimination,” Chapter 9-1100, et seq. of the...more

Ballard Spahr LLP

Philadelphia Limits Employer Use of Credit Information

Ballard Spahr LLP on

Beginning July 7, 2016, employers in Philadelphia may not consider credit history or other credit-related information for job-related decisions for many non-managerial jobs. This change stems from an amendment to the Fair...more

Carlton Fields

Congress Considers Changes to FCRA to Expand Consumer Credit Files and Limit Use of Credit Reports for Employment Decisions

Carlton Fields on

Two bills amending the Fair Credit Reporting Act (FCRA) intended to benefit consumers are making their way through Congress. H.R. 4172, "The Credit Access and Inclusion Act of 2015," has bipartisan support, although it is...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New Jersey Advances Bill to Ban Most Employee Credit Checks

On December 14, 2015, the New Jersey Assembly Labor Committee released another bill—A2298—seeking to prohibit most credit checks on employees. Essentially the same as prior bills that failed in the New Jersey legislature...more

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