Sunday, August 22, 2010

New Illinois Law Restricts Employer Use of Credit History

"On August 10, 2010, Illinois Governor Pat Quinn signed the Employee Credit Privacy Act, which prohibits most Illinois employers from inquiring about an applicant’s or employee’s credit history or using an individual’s credit history as a basis for an employment decision. The definition of “employer” under the Act exempts banks, insurance companies, law enforcement agencies, debt collectors and state and local government agencies that require the use of credit history.

The Act does not prohibit an employer from checking the credit history of an employee if “a satisfactory credit history is an established bona fide occupational requirement of a particular position.” That condition is met only if at least one of the following circumstances is present:  
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