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).