News & Analysis as of

Credit Checks Hiring & Firing Job Applicants

Seyfarth Shaw LLP

Massachusetts Set to Restrict Employers from Using Credit Checks in Making Employment Decisions

Seyfarth Shaw LLP 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 proposed law, which includes only...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.

Philadelphia Expands Limits On Employers’ Use Of Applicant or Employee Credit Histories

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An amendment to the City of Philadelphia’s ordinance that restricts the use of credit checks and credit-related information in the hiring, promotion, discipline, or discharge process adds law enforcement agencies and...more

Seyfarth Shaw LLP

Appellate Court Considers the Illinois “Employee Credit Privacy Act”

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Seyfarth Synopsis: On December 3, 2019, the Appellate Court of Illinois affirmed summary judgment in favor of a public utility company that considered credit checks for individuals applying for a customer service...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

Davis Wright Tremaine LLP

Hire With Less Risk: Limits On Employment Candidate Inquiries In California

California state and local legislation has made the employment application and interview process nearly as nerve-wracking for employers as it is for prospective candidates. From salary history to criminal history, topics once...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

Foley & Lardner LLP

Is Your Background Check Too Broad? New D.C. Law Bans Requests for or Use of Credit Information

Foley & Lardner LLP on

Credit information is often one component of a comprehensive employment background check. As we have previously reported, employers utilizing background checks performed by a credit reporting agency are subject to a number of...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

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

Franczek P.C.

Illinois Appellate Court Reminds Employers of Restrictions on Credit Checks

Franczek P.C. on

Recently, an Illinois Appellate Court found that Neiman Marcus violated state law by running credit checks on potential sales associates. In Ohle v. The Neiman Marcus Group, Ohle claimed that her conditional offer of...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

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

Robinson+Cole Data Privacy + Security Insider

Pennsylvania Transit sued for Fair Credit Reporting Act violation

Last week, the Southeastern Pennsylvania Transportation Authority (SEPTA) was hit with a class action alleging violations of the Fair Credit Reporting Act (FCRA) for not sufficiently notifying job applicants of its use of...more

Genova Burns LLC

Additional Restrictions for Employer Credit Checks Could Be On the Way For New Jersey Employers

Genova Burns LLC on

Legislation advanced by the New Jersey State Assembly (A2298) on December 14, 2015 could signal tougher restrictions on employer credit checks of existing or potential employees. The pending legislation also would also...more

Proskauer - Law and the Workplace

NYC Commission on Human Rights Explains New NYC Background Check Laws

We were pleased to host a program on September 28, 2015 on New York City’s two new background check laws, the Stop Credit Discrimination in Employment Act and the Fair Chance Act. Paul Keefe, Supervising Attorney at the NYC...more

Akin Gump Strauss Hauer & Feld LLP

Two New NYC Statutes Constrain Hiring Process - Hedge Up - A Heads-Up on Employment Issues Confronting the Hedge Fund Industry

If you read one thing... - Two new employment statutes place additional burden on New York City firms during prospective employee screening and provide fodder for the plaintiffs’ bar - Credit history and...more

Mintz - Employment, Labor & Benefits...

The New York City Commission on Human Rights Releases Enforcement Guidance on the Stop Credit Discrimination in Employment Act

Last week, the Stop Credit Discrimination in Employment Act became effective. It amended the New York City Human Rights Law to prohibit most employers from making employment decisions based on an employee or applicant’s...more

Morgan Lewis

NYC Commission on Human Rights Releases Interpretive Enforcement Guide for the SCDEA

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The Commission’s guide outlines narrow interpretation and recordkeeping requirements for employers seeking exemptions to the SCDEA, as well as guidance on enforcement and penalties for SCDEA violations....more

Proskauer - Law and the Workplace

NYCCHR Issues Guidance on Credit Check Law

The New York City Commission on Human Rights (the “Commission”) has just issued guidance in respect of the Stop Credit Discrimination in Employment Act (the “SCDEA”), which goes into effect September 3, 2015 and modified the...more

Foley & Lardner LLP

Background Checks? That is the Question

Foley & Lardner LLP on

Has your company decided yet whether it will conduct criminal background or credit checks? If you are already using that tool as part of your job screening process, are you keeping up with legal developments in every city,...more

Sheppard Mullin Richter & Hampton LLP

NYC Council Votes to Ban Employers from Conducting Credit Checks

On April 16, 2015, the New York City Council (the “Council”) passed a bill (Int. 0261-2014) prohibiting employers from requesting or using the consumer credit history of an employee or job applicant when making employment...more

Bond Schoeneck & King PLLC

Most New York City Employers May Soon Be Prohibited From Conducting Credit Checks on Job Applicants

On April 16, 2015, the New York City Council overwhelmingly passed an amendment to the New York City Human Rights Law that would bar most city employers from using credit checks as part of their hiring process. ...more

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