Bill > S2425

This bill amends existing law to regulate how employers can use credit reports for employment purposes, defining a "credit report" as information about a person's creditworthiness, including credit scores, loan debts, and financial management abilities, and "employment purposes" as anything related to evaluating an individual for a job, promotion, or other employment-related decisions. Generally, employers are prohibited from using credit reports for these purposes or requesting them unless specific exceptions apply, such as when federal or state law requires it, for certain executive or managerial positions at financial institutions, for positions requiring national security clearance, or for roles involving significant financial responsibility like managing at least $6,000 in third-party funds or having fiduciary authority over agreements of that value. Even when an exception applies, employers must obtain written consent each time they access a credit report, disclose their reasons for doing so, provide the employee or applicant with a copy of the report and notice of their rights, allow them to dispute the information, and cover the costs of obtaining the report, with provisions to prevent adverse employment actions until disputes are resolved and to prohibit retaliation against employees who assert their rights under this law, which will take effect on January 1, 2017.