The Job Applicant Fairness Act was recently enacted in Maryland and goes into effect Oct. 1, 2011. The Act prohibits most employers from using credit history in making employment decisions unless specific timing and job-relatedness requirements are met.
The Act applies to employers of any size, but specifically excludes certain financial institutions, and employers who are required to inquire into an applicant’s or employee’s credit history under federal or state law, from the Act’s prohibitions. The Act also provides limited exceptions that allow employers to request or use credit information where such information is related to a “bona fide purpose that is substantially job-related,” e.g. money-handling or other confidential job duties.
Maryland now joins four other states (Illinois, Washington, Oregon, and Hawaii) in limiting employers’ use of credit information. Similar legislation is pending in 15 additional states and the House.
0 comments:
Post a Comment