On January 19, U.S. Representative Steve Cohen (D-TN) introduced H.R. 321, the “Equal Employment for All Act,” which would amend the Fair Credit Reporting Act to restrict employers from using consumer credit reports to make adverse employment decisions (e.g., hiring, promotion, termination) regarding prospective or current employees.  The Act contains exceptions for, among other scenarios, positions that require national security clearances and managerial positions at financial institutions. 

H.R. 321 is the first federal legislation to restrict employers’ use of employee credit reports, but there has already been considerable activity at the state level.  Four states – Hawaii, Illinois, Oregon, and Washington – already have laws restricting employer use of employee credit reports, and 13 more states are considering legislation that would impose similar restrictions.

We will continue to monitor federal and state developments in this area and keep you posted as these bills make their way through the legislative process.   

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Mike Nonaka Mike Nonaka

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works…

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works with a number of banks, lending companies, money transmitters, payments firms, technology companies, and service providers on innovative technologies such as big data, blockchain and related technologies, bitcoin and other virtual currencies, same day payments, and online lending.