SB 275

Current law prohibits discrimination in employment on the basis of age, race,

creed, color, disability, marital status, sex, national origin, ancestry, sexual

orientation, arrest record, conviction record, military service, or use or nonuse of a

lawful product off the employer's premises during nonworking hours. Current law

also specifies that employment discrimination because of arrest record includes

requesting an individual to supply information regarding any arrest record, except

when employment depends on the bondability of the individual, and that

employment discrimination because of conviction record does not include refusing to

employ an individual who has been convicted of an offense the circumstances of

which substantially relate to the circumstances of the particular job or who is not

bondable when employment depends on the bondability of the individual.

This bill prohibits employment discrimination based on credit history. The bill

specifies that employment discrimination because of credit history includes an

employer, labor organization, employment agency, licensing agency, or other person

requesting an applicant, employee, member, licensee, or any other individual, on an

application form or otherwise, to authorize that person to procure the individual's

credit history, except that it is not employment discrimination to request that

authorization: 1) if the circumstances of an individual's credit history are

substantially related to the circumstances of a particular job or licensed activity; or

2) if employment, membership, or licensing depends on the bondability of the

individual and the individual may not be bondable due to his or her credit rating.

The bill also specifies that it is not employment discrimination because of credit

history to refuse to employ, admit, or license, or to bar or terminate from employment,

membership, or licensing, any individual if: 1) the circumstances of an individual's

credit history are substantially related to the circumstances of the particular job; or

2) if the individual is not bondable when bondability is required by state or federal

law, administrative regulation, or established business practice of the employer.

Under the bill, "credit history" means information provided in a consumer

report under the federal Fair Credit Reporting Act (FCRA), which defines "consumer

report" as any written, oral, or other communication by a consumer reporting agency

bearing on an individual's creditworthiness, credit standing, credit capacity,

character, general reputation, personal characteristics, or mode of living, which is

used or expected to be used as a factor in establishing the individual's eligibility for

credit, insurance, employment, or any other purpose allowed under federal law. The

FCRA further defines "consumer reporting agency" as any person who, for monetary

fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part

in the practice of assembling or evaluating consumer credit information or other

information on individuals for the purpose of furnishing consumer reports to third

parties, and who uses any means or facility of interstate commerce for the purpose

of preparing or furnishing consumer reports.