PRINTER'S NO. 2924
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2207
Session of
2024
INTRODUCED BY BOYD, GIRAL, KHAN, SAMUELSON, McANDREW,
SCHLOSSBERG, SMITH-WADE-EL, McNEILL, NEILSON, HOHENSTEIN,
HILL-EVANS, HOWARD, CERRATO, SANCHEZ, WARREN, CONKLIN,
WAXMAN, DALEY, DELLOSO AND SCOTT, APRIL 11, 2024
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 11, 2024
AN ACT
Prohibiting employers from conducting credit check histories on
employees and prospective employees; establishing the
Employment Credit Check Prohibition Enforcement Account;
imposing duties on the Department of Labor and Industry and
the Secretary of Labor and Industry; prescribing penalties;
and establishing a private right of action.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Credit Check
in Employment Prohibition Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Employment Credit Check Prohibition
Enforcement Account established under this act.
"Adverse employment action." A refusal to hire or a
discharge, demotion, suspension, retaliation or unlawful
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discrimination against an employee or job applicant.
"Credit check history." A written, oral or other
communication of information by a consumer reporting agency that
bears on a consumer's creditworthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics or mode of living.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employ." To engage, suffer or permit to work.
"Employee." An individual who:
(1) is employed by an employer;
(2) is not free from the control and direction of the
employer in connection with the performance of the work;
(3) does not perform work outside the usual course of
the employer's business; and
(4) is not customarily engaged in an independently
established trade, occupation or business of the same nature
as that involved in the work performed.
"Employer." The term includes the Commonwealth, its
political subdivisions and their instrumentalities or any
person, association, entity, organization, partnership, business
trust, limited liability company or corporation that directly or
indirectly, or through an agent or any other person, employs or
exercises control over the wages, hours or working conditions of
an employee.
"Employment purpose." Evaluating an employee or job
applicant for employment, hiring, promotion, demotion,
reassignment, adjustment in compensation, adjustment in benefits
or retention as an employee.
"Secretary." The Secretary of Labor and Industry of the
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Commonwealth.
Section 3. Prohibiting credit checks in employment.
(a) General rule.--Except as provided in subsection (b), an
employer may not obtain or use information contained in a credit
check history for an employment purpose, including refusal to
hire, discharge, demote, suspend, retaliate or otherwise
discriminate against an employee with regard to promotion,
compensation or the terms, conditions or privileges of
employment.
(b) Exception.--Subsection (a) shall not apply to:
(1) An employer that is a federally insured bank,
savings bank, savings and loan association or credit union.
(2) An employer that is required by Federal, State or
local law or ordinance to use an individual's credit check
history for an employment purpose.
(3) The obtainment or use of information in the credit
check history of an employee when the information in the
credit check history is substantially job-related and the
employer's reason for the use of the information is disclosed
in writing to the employee prior to the employer obtaining a
credit check history. The employer shall obtain consent from
the employee to obtain a credit check history.
(c) Use of credit check history information.--
(1) An employer that is identified under subsection (b)
may not use an employee's credit check history as the sole
factor in a decision regarding employment, compensation or a
term, condition or privilege of employment.
(2) If the employer that is identified under subsection
(b) seeks to obtain or act upon an employee's credit check
history, the employer shall:
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(i) Disclose the reason for the use of the
information to the employee.
(ii) Obtain the employee's written consent each time
the employer seeks to obtain the employee's credit check
history.
(iii) Not require the employee to pay for any cost
associated with obtaining the employee's credit check
history.
(iv) If an adverse employment action is taken based
in whole or in part upon the credit check history,
disclose the reason for the action in writing.
(3) The employer shall maintain the confidentiality of
the information contained in the employee's credit check
history and, if the employment is terminated or the job
applicant is not hired, provide the employee with the credit
check history or have the credit check history destroyed in a
secure manner that ensures the confidentiality of the
information in the credit check history.
Section 4. Penalties.
(a) Duty of department.--The department shall establish a
system for adjudicating complaints received under this act. The
system shall be promulgated by the department through
regulations.
(b) Right to file complaint.--An employee may file a
complaint with the department, on a form and in a manner
prescribed by the department, for an alleged violation of this
act.
(c) Administrative penalty.--An employer that is found in
violation of this act shall pay an administrative penalty of
$500 for each violation.
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(d) Restricted account established.--The penalties collected
under this act shall be paid to the department and deposited
into a restricted account within the General Fund which shall be
known as the Employment Credit Check Prohibition Enforcement
Account. The money in the account is appropriated on a
continuing basis to the department for the purpose of
administering and enforcing this act.
Section 5. Enforcement powers of secretary.
The secretary may take any of the following actions under
this act:
(1) Enter and inspect a worksite or place of business at
any reasonable time to examine and inspect records that
relate to compliance with this act.
(2) Subpoena witnesses, administer oaths, examine
witnesses and copy or compel the production of records,
contracts and other documents that are necessary and
appropriate to the enforcement of this act.
(3) Petition the Commonwealth Court to enforce any
subpoena or order issued by the department under this act.
Section 6. Private right of action.
(a) General rule.--An employee who received an adverse
employment decision based on a credit check history in violation
of this act, or has been discharged, been threatened or has
otherwise suffered retaliation, discrimination or other adverse
action as a result of participating in an investigation or
reporting a violation of this act, may bring an action in a
court of common pleas in accordance with established civil
procedures of this Commonwealth.
(b) Limitation.--An action under this section must be
brought within three years from the date that the employee knew
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of the violation, discharge, threat, retaliation or
discrimination.
(c) Relief.--If an employee prevails in an action brought
under this section, the employee shall be entitled to the
following relief:
(1) Reinstatement of the employee without a loss in
seniority status, if applicable.
(2) Reasonable attorney fees and costs of the action.
(3) Other legal and equitable relief the court deems
appropriate.
Section 7. Construction.
Nothing in this act shall be construed to supersede or
preempt a local ordinance or regulation that prohibits an
employer from obtaining a credit check history or similar credit
worthiness report of an employee or prospective employee
consistent with the provisions of this act.
Section 8. Effective date.
This act shall take effect in one year.
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