DC to Limit Use of Credit Reports in Hiring Process
Special Announcement to all District of Columbia employers:
The District of Columbia has passed a law entitled the “B21-0244: Fair Credit History Screening Act”, which limits the use of credit reports in the hiring process and decision. The mayor signed this bill on Feburary 15th, 2017 and it goes into effect in 30 days.
The law states the following:
DC Code § 2–1402.11(a)(4)(D)
(a) It shall be an unlawful discriminatory practice to do any of the following acts, wholly or partially for a discriminatory reason based upon the actual or perceived: race, color, religion, national origin, sex, age, marital status, personal appearance, sexual orientation, gender identity or expression, family responsibilities, genetic information, disability, matriculation, or political affiliation, or credit information of any individual:
(4) By an employer, employment agency or labor organization —
(D) To directly or indirectly require, request, suggest, or cause any employee to submit credit information or use, accept, refer to, or inquire into an employee’s credit information.
There are several exceptions, including but not limited to:
- Where an employer is otherwise required by District law to require, request, suggest, or cause any employee to submit credit information or use, accept, refer to, or inquire into an employee’s credit information.
- Where an employee is applying for a position as or is employed as a police officer with the Metropolitan Police Department, as a special police officer or campus police officer.
- Where an employee is required to possess a security clearance under District law.
- To financial institutions, where the position involves access to personal financial information.
The complete text of this law can be found here.
This law will require a review of the hiring process in place and may require changes to that process. Justifacts recommends that you consult with your legal department to determine what changes, if any, need to be made to your hiring process in order to comply with this law.
It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. We go to great lengths to make sure our information is accurate and useful. We recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.
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