Prohibits employers from seeking/using credit reports in making hiring decisions concerning prospective employees, asking questions about the applicant's financial past during interviews or including credit history questions in their job applications.
Summary
S0285 would create the “Consumer Credit History Employment Protection Act” and bar most employers from asking job applicants about their financial past, including questions about credit history on applications or during interviews. It would also prohibit employers from seeking or using credit checks when making hiring decisions. The bill is aimed at limiting the use of consumer credit information in employment screening and preventing applicants from being judged on financial history unrelated to job performance.
The bill includes several exceptions. Credit checks would still be allowed where required by federal or state law, for positions requiring national security clearance, for jobs involving signatory authority over third-party funds or assets of $10,000 or more, for certain non-clerical positions with access to trade secrets or national security information, and for roles that can modify digital security systems protecting networks or databases. If an exception applies, the employer must give notice and obtain written consent before conducting a credit check.
Impact
If enacted, the bill would add a new chapter to Title 28 governing labor and labor relations and would change employer hiring practices statewide by restricting the use of credit history in employment decisions. It would also amend the state’s deceptive trade practices law to reinforce notice requirements when credit reports are requested in connection with employment. Enforcement would be split between the Department of Labor and Training, which could investigate complaints and impose administrative penalties of up to $10,000 per violation, and private civil actions by aggrieved employees or former employees, who could recover presumed damages, attorneys’ fees, and costs.
Sentiment
The bill’s overall framing suggests a consumer- and worker-protection approach, with the stated goal of preventing unfair employment barriers based on credit history. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or formal support/opposition in the available record. Based on the text alone, the measure appears designed to address concerns about fairness in hiring while preserving employer access to credit checks in limited, sensitive positions.
Contention
The main points of contention are likely to center on whether employers should be allowed to use credit history as a screening tool at all, and whether the exceptions are broad enough to protect legitimate business and security interests. Employers may argue that credit checks are necessary for positions involving financial responsibility, sensitive data, or cybersecurity access, while supporters are likely to emphasize that credit history can unfairly exclude qualified applicants and may not be job-related in most cases. The enforcement provisions, including administrative fines and private lawsuits with damages and attorneys’ fees, may also be a point of concern for employers.