Effective January 1, 2011, the Act will prohibit employers, in many circumstances, from inquiring about or using an employee’s or prospective employee’s credit history as a basis for employment, recruitment, discharge, or compensation. The Act also will prohibit an employer from retaliating or discriminating against a person who files a complaint under the Act, participates in an investigation, proceeding or action concerning a violation of the Act, or opposes violation of the Act. Pursuant to the Act, an employer will not:
- Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, term, condition, or privilege of employment because of the individual’s credit history or credit report.
- Inquire about an applicant’s or employee’s credit history.
- Order or obtain an applicant’s or employee’s credit report from a consumer reporting agency.
Exceptions to the Act are as follows:
- State or federal law requires bonding or other security covering the individual holding the position.
- Duties of the position include custody of or unsupervised access to cash or marketable assets valued at $2,500 or more.
- Duties of the position include signatory power over business assets of over $100 or more per transaction.
- Position is managerial, and involves setting the direction or control of the business.
- Position involves access to personal or confidential information, financial information, trade secrets, or state or federal national security information.
The Act also states that nothing in its provisions shall prohibit employers from conducting a thorough background investigation which may include obtaining a consumer report and/or investigative report without information on credit history, as permitted by the Fair Credit Reporting Act (FCRA).