Employment Credit Check Prohibitions Expanding

Under a new law, employers in Illinois are prohibited from asking about an employee or applicant s credit history or from using credit history as a basis for an employment decision.

Some employers are exempt, including banks, insurance companies, law enforcement and government agencies that require the use of credit history. The law also exempts job positions where a credit history is a bona fide occupational requirement, such as where a manager sets the direction of the business or an employee has unsupervised access to over $2,500 or personal, financial information.

In March, Oregon s legislature passed a bill banning credit checks by employers in an effort to ease unemployment. Hawaii, Louisiana and Washington have passed similar measures.

Earlier this month, the EEOC issued an advisory letter that warned employers that use of credit checks could violate antidiscrimination laws if it leads to the disproportionate exclusion of women, minorities and other protected group members.