Compensation Solutions Blog
Human Resources Outsourcing (HRO – PEO – ASO – Payroll – Agency)
Maryland Enacts Law Barring Use of Credit Checks in Employment
On April 12, 2011, Maryland Governor Martin O’Malley signed the Job Applicant Fairness Act into law. The Act, which takes effect October 11, 2011, prohibits most employers from using the credit history of an applicant or current employee when making employment-related decisions. The law does not apply to financial institutions, state-approved credit unions, investment firms [...]
Illinois Bans Credit Checks for Most Employers
The Illinois legislature passed House Bill 4658, which creates the Employee Credit Privacy Act. Bill 4658, signed into law by Governor Pat Quinn on August 10, 2010, takes effect January 1, 2011 and restricts employers’ ability to conduct credit checks on applicants and use the results for employment purposes. Specifically, employers are prohibited from 1) [...]
Very Little Movement on Legislation Banning Credit Checks
In March 2010 we reported that many states and the federal government are considering legislation that would ban the use of credit checks in the employee screening process (“State and Federal Governments Consider Ban on Credit Checks for Most Applicants”). To date, there has been very little movement. Oregon enacted a law earlier in March, [...]
State and Federal Governments Consider Ban on Credit Checks for Most Applicants
States and the federal government are considering banning employers from using credit checks to screen job applicants. High unemployment rates are forcing people to go into debt. If companies won’t hire people because of a negative credit history, they will not be able to dig themselves out of debt, perhaps go into even deeper debt, [...]