AN ACT ELIMINATING CREDIT REPORTS AS A BASIS FOR EMPLOYMENT DECISIONS.

This bill bans an employer, its agent, representative, or designee, from requiring, as a condition of employment, an employee or prospective employee to consent to the creation of a consumer report that includes information about his or her (1) credit score; (2) credit, savings, or checking account balances; or (3) savings or checking account numbers. The bill creates exceptions to this ban such as when a consumer report is substantially related to the person's job or potential job.

It permits complaints regarding potential violations of this ban to be filed with the labor commissioner. The commissioner must hold a hearing and must impose a fine of up to $ 500 per violation. Aggrieved parties can appeal to the Superior Court.

The bill creates exceptions to the ban on consumer reports containing certain credit information if one of the following conditions are met:

1. the report is substantially related to the employee's current or potential job,

2. the report is required by law, or

3. the employer has reasonable cause to believe the employee has engaged in specific activity that constitutes a violation of the law.

The bill defines employee as any person engaged in service to an employer in a business of the employer. Employer means any person engaged in business with at least one employee. It includes the state, municipalities, and any other political subdivision of the state.

An employee alleging a violation of the bill's provisions can file a complaint with the labor commissioner. Upon receipt of the complaint, the commissioner must hold a hearing in accordance with the Uniform Administrative Procedures Act. The commissioner must impose a $ 500 fine for each violation which must be paid to the aggrieved employee or prospective employee. The commissioner may also award the employee or prospective employee all other appropriate relief. Aggrieved parties can appeal to the Superior Court.

FCRA contains a number of requirements regarding the accuracy, fairness, and privacy of information in the files of consumer reporting agencies (CRA). It allows CRAs to issue “consumer reports” in a number of circumstances, but contains special provisions for situations where the consumer or prospective employee does not initiate the transaction (i. e. , for employment background screening). Among other things, FCRA prohibits an agency from furnishing a consumer report, which may include credit information, about a job candidate or employee without getting the person's permission. Furthermore, if the employer or prospective employer decides to use information in the consumer report to deny a job application, refuse to promote an employee, or any other “adverse action” the employer must:

1. before taking the action, give the job candidate or employee a copy of the consumer report and a summary of the person's rights under the FCRA, and

2. after taking the adverse action, give the job candidate or employee individual notice that adverse action has been taken and he or she has the right to dispute the information's accuracy.

Yea

Nay

(03/10/2009)