New Orleans restricts use of consumer credit checks

December 05, 2016 0 COMMENTS

by H. Mark Adams

A new ordinance in New Orleans will prohibit contractors doing business with the city from using consumer credit background checks and consumer credit history in making new-hire and other employment decisions. The ordinance will affect new city contracts entered into on or after December 23.

Employees who perform fewer than 40 hours of work in a calendar year in New Orleans under a city contract aren’t covered by the new ordinance, which includes exceptions for employees in sensitive positions such as: read more…

Colorado law restricting use of credit checks takes effect July 1

June 18, 2013 0 COMMENTS

by Mark Wiletsky

Colorado employers need to make sure their background check policies comply with the state’s Employment Opportunity Act, which takes effect July 1. The new law bans employers from obtaining and using credit history information when evaluating applicants and employees. Certain jobs are exempt from the prohibition, but the exemptions are very narrow.

Section 8-2-126 of the Colorado Revised Statutes provides that employers can’t use consumer credit information for employment purposes unless the information is substantially related to an employee’s current or potential job. That means Colorado employers are prohibited from using credit information in employment decisions except when credit or financial responsibility is substantially related to the job.

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New Illinois Law Prohibits Use of Credit History in Hiring Decisions

August 12, 2010 1 COMMENTS

by Steve Brenneman

Effective January 1, 2011, Illinois employers will have yet another restriction on their ability to make employment decisions. A new law will prohibit many employers from basing hiring, promotion, and other employment decisions on an employee or job applicant’s credit history.

The Employee Credit Privacy Act (HB 4658), which was signed into law by Governor Pat Quinn yesterday, also forbids employers from inquiring about or obtaining a copy of an applicant or employee’s credit history or credit report. Illinois joins Washington, Hawaii, Oregon, and Louisiana in prohibiting the use of credit histories in employment decisions.

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