Employer Law Report

Tag Archives: employee credit check

Bureau of Consumer Financial Protection issues revised FCRA summary of rights form

Section 301 of the federal Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law on May 24, 2018, amended the Fair Credit Reporting Act (FCRA), effective Sept. 21, 2018, to require consumer reporting agencies (such as those that employers use for applicant and employee background check purposes) to include new language on the Summary of Rights form that explains a consumer’s right to obtain a security freeze to protect against identity theft. The statutory language states that “a security freeze shall not apply to the making of a consumer report for use of the following: … …

EEOC Public Meeting Addresses Use of Credit History As Screening Tool

Last Wednesday, the EEOC held a public meeting at which it took testimony to address the perceived ills associated with the use of applicant credit histories in making hiring or other employment decisions. With unemployment at such high levels across the country, employer credit checks have come under greater scrutiny. Back in August, Illinois enacted the Employee Credit Privacy Act, which prohibits, with limited exception, an employer from using a person’s credit history in making employment decisions. 

As we reported last year, Ohio’s legislature considered a credit check ban as well, but that bill went nowhere. The EEOC’s press release can be …