Vote Smart's Synopsis:

Vote to pass a bill that limits the use of consumer credit information by employers, effective July 1, 2012.

Highlights:

• Prohibits an employer from using consumer credit information for “employment purposes” unless the information is required by a defense or security contract (Sec. 2).

• Defines “employment purposes” as evaluating a person for employment, hiring, promotion, demotion, reassignment, compensation adjustment or retention as an employee (Sec. 2).

• Requires employers who use consumer credit information to allow an employee or applicant to explain any circumstances which may have affected the information (Sec. 2).

• Requires employers who use consumer credit information to take “adverse action” on employment decisions to notify the job applicant or employee of that information (Sec. 2).

• Defines “adverse action” as employment denial, demotion, denial of promotion, dock in compensation or termination of employment for an employee (Sec. 2). 

Full Bill Text