Virginia House Bill HB2116

Virginia 2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23

Caption

Employment; restrictions on use of credit report for employment purposes.

Impact

If enacted, HB2116 will significantly alter state employment laws concerning the hiring practices of employers. The bill specifically targets the practice of using credit reports, which has been a point of contention for many applicants who feel that such checks can unfairly disadvantage them in the job market. By preventing employers from considering credit history, the bill may increase job opportunities for those who are economically disadvantaged. However, it maintains exceptions for jobs that require national security clearance or are mandated by other laws to use credit reports.

Summary

House Bill 2116 introduces restrictions on the use of credit reports for employment purposes in Virginia. The bill prohibits employers from using, requesting, or procuring credit reports in connection with employment decisions unless specific conditions are met. This legislation aims to create a fairer hiring process by ensuring that credit history cannot be used as a criterion for employment, which proponents argue can help prevent discrimination against potential employees who may have poor credit due to factors such as unemployment or medical expenses.

Contention

While supporters view the bill as a necessary measure to combat discrimination and promote equality in employment, opponents may argue that the ability to evaluate an employee's financial responsibility through credit reports can be a legitimate consideration in certain job roles. Critics express concerns that completely restricting credit checks might hinder employers' ability to ensure potential hires are trustworthy, especially in positions that involve financial oversight. Thus, the bill's passage could lead to ongoing debates about the balance between protecting employee rights and maintaining employer discretion.