Il H 4658: Employee Credit Privacy Act
This bill creates the Employee Credit Privacy Act. It prohibits employers, exempting public employers, insurers, financial institutions or debt collectors, from using a person’s credit report or credit history as a basis for employment, discharge, or compensation.
Specifically, the bill provides that an employer may not “[f]ail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a 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 or order or obtain an applicant’s or employee’s credit report from a consumer reporting agency. The prohibition does not where a satisfactory credit history relates to a bona fide occupational requirement.
Further, the law prohibits an employer from retaliating or discriminating against a person who participates in an action concerning a violation. Complaints are not enforced by the IDOL, but are enforceable through civil action. The Act is effective Jan. 1, 2011.
Other states that prohibit credit checks or have proposed such legislation include: Connecticut, Georgia, Indiana, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Vermont, Wisconsin, Hawaii, Washington and Oregon.