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 credit report that includes information about his or her (1) credit score; (2) credit payment history; (3) credit, savings, or checking account balances; or (4) savings or checking account numbers. The bill creates exceptions to this ban such as when a credit 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 whenever a party to the complaint requests it, and violators face a $ 300 civil penalty for each offense. Aggrieved parties can appeal to the Superior Court.

*House Amendment “A” (1) removes the requirement that the fine be paid to the aggrieved employee and the commissioner's authority to award other appropriate relief and (2) permits only an aggrieved employer to appeal a decision to the Superior Court.

*House Amendment “B” (1) adds credit payment history to the items an employer is barred from seeking consent to obtain; (2) refers to reports that employers seek as credit reports rather than consumer reports; (3) requires the labor commissioner to hold a hearing on a complaint when a party to the complaint requests one, rather than hold a hearing for each complaint; (4) defines when a credit report is substantially related to a job; (5) changes the fine of $ 500 per violation to a civil penalty of $ 300 per violation; and (6) permits any aggrieved party to appeal in Superior Court.

The bill creates exceptions to the ban on credit reports containing certain 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.

Under the bill “substantially related to the employee's current or potential job” means the information is related to the position for which the employee or prospective employee is being evaluated because the job:

1. is a managerial position which involves setting the direction or control of the business;

2. involves access to customers', employees', or employer's personal or financial information other than information customarily provided in a retail transaction;

3. involves a fiduciary responsibility to the employer, including, but not limited to, the authority to issue payments, transfer money, or enter into contracts; or

4. provides an expense account.

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 can file a complaint with the labor commissioner. Upon receipt of the complaint, the commissioner must hold a hearing when either party to the complaint requests one. The hearing must be held in accordance with the Uniform Administrative Procedure Act.

Employers in violation of the bill are subject to a $ 300 civil penalty for each violation. Aggrieved parties can appeal to the Superior Court. Upon the request of the commissioner, the attorney general must institute a civil action to recover any unpaid penalties.

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 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)

Yea

Nay

(04/27/2009)