Washington, DC sends Fair Credit Amendment Act to mayor for signature
- The District of Columbia Council approved the Fair Credit in Employment Amendment Act of 2016 on Dec. 20 and passed it on to Mayor Muriel Bowser for her signature, reports JD Supra. The act prohibits employers from using credit history reports to discriminate against prospective hires and current employees.
- The act essentially bars employers from directly or indirectly requiring, requesting, suggesting or causing any employee or job applicant to submit credit information.
- Bowser has until Feb. 16 to approve or veto the bill, which amends the D.C. Human Rights Act of 1977.
Certain job requirements and duties may require credit checks. Prospective hires applying for a position handling the company's finances might not be suitable if their credit background raises flags
A credit check isn't necessary for most jobs outside of finance and accounting. Employers can save the costly expense of running such checks if they're not applicable to the job's duties.
Employers should have background check policies. They also should comply with any local or state ordinances that bar credit checks, with some exceptions, to avoid penalties and possible lawsuits by affected job candidates and employees.