D.C.: Council Passes New Fair Credit Law, Aims to Strengthen Fair Chance Hiring
|
APPLIES TO Most Employers with D.C. Employees |
EFFECTIVE Expected early spring 2017 |
QUESTIONS? Contact HR On-Call |
The Washington D.C. Council recently passed the Fair Credit in Employment Amendment Act (the “Act”), a bill that prohibits employers from inquiring into applicant, intern and employee credit information. Employers cannot require disclosure of credit information as a condition of employment, and are further prohibited from using such credit information, even after making a conditional offer of employment.
The Act is currently pending approval by Mayor Muriel Bowser. If approved, the Act is expected to go into effect as early as spring 2017.
The Act is intended to further strengthen D.C.’s fair chance hiring practices. D.C. already enacted a “ban-the-box” law in 2014 prohibiting inquiries into criminal history before a conditional offer of employment is made. The two bills differ in that employers may conduct a screening for criminal convictions after the conditional offer of employment, whereas the Act bans inquiries on credit history at any point during the hiring process. The Act is intended to protect potential employees from disqualification from employment opportunities due to irrelevant or inaccurate credit information, which disproportionately affects minorities, women, and low-wage workers.
Action Items
- Look for updates from ManagEase on the progress of this bill.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
© 2017 ManagEase, Incorporated.
Leave a Reply
Want to join the discussion?Feel free to contribute!