The Chicago Tribune reports on a new law in Illinois concerning financial privacy: The law bans employers from checking the credit of job applicants, with some exceptions. Illinois is not the first state to ban these pre-employment credit checks.
In March, the Oregon governor signed a new law that protects job applicants’ privacy when it comes to their credit reports. Washington, D.C., among other jurisdictions, is also considering a ban on pre-employment credit checks.
In Illinois, Gov. Quinn signed House Bill 4658 (pdf), which creates the Employee Credit Privacy Act. The Tribune reports:
Illinois employers will no longer be able to run credit checks on those applying for jobs under a measure Gov. Pat Quinn signed into law today.
Supporters say the move is aimed at preventing employers from turning away job seekers due to poor credit amid an economic crisis that has left many unemployed and struggling to pay the bills. […]
Under the new law that takes effect Jan. 1, employers cannot use credit history to determine whether to hire, fire or promote someone. If an employer is caught accessing such information, they can face legal action.
However, some industries and positions are exempt, such as those dealing with banking, insurance, trade secrets or state and national security.