Total Articles: 5
New Credit History Law Goes Into Effect January 1
Effective January 1, 2011, Illinois employers who perform background checks or otherwise inquire about credit history as part of the recruitment process or in making other employment decisions must comply with the Illinois Employee Credit Privacy Act (IECPA), which generally prohibits inquiry into and consideration of an applicant or employee’s credit history to make decisions concerning employment, including with respect to recruiting, discharge, compensation and other terms and conditions of employment. The IECPA restricts use of a broad range of credit information without regard to the source of such information, and is not limited to credit information that is obtained from a consumer reporting agency.
New Illinois Law Prohibits Use of Credit History in Hiring and Employment Decisions
Effective January 1, 2011, a new law will prohibit many Illinois employers from basing hiring, promotion, and other employment decisions on an employee or job applicant's credit history.
New Credit-Checking Legislation Signed Into Law (pdf).
Last April, we alerted you to a fast-moving proposal in the
Illinois General Assembly to prohibit employers from using
an employee’s credit history in employment decisions
(Check Your State Law Before Credit-Checking Your
Employees, 4/13/10). With Governor Patrick Quinn’s
signature one week ago, this proposal became law. When
it goes into effect on January 1, 2011, Illinois will join a
small group of states banning credit checks for most job
applicants.
New Illinois Law Prohibits Employers' Use of Credit Checks in Hiring.
The credit history of a job candidate will be off limits to Illinois employers as of January 1, 2011. Illinois Governor Pat Quinn signed the bill into law on Tuesday, thereby prohibiting employers from making employment decisions--including the decision whether to hire--based on the individual's credit history.
New Illinois Law Limits Credit Checks By Employers.
Effective January 1, 2011, a new law signed today by Illinois Governor Pat Quinn will strictly limit employers' ability to obtain and use credit history information regarding employees and applicants. The Employee Credit Privacy Act applies to most Illinois employers, but excludes banks and financial institutions, insurance companies, state law enforcement units, state and local government agencies, and debt collection agencies.
