US Codex
Bill
Notes

Title VI — Restrictions on Credit Checks for Employment Decisions

H.R. 3621 · 116th Congress · Jan 30, 2020 · Lineage

VI Restrictions on Credit Checks for Employment Decisions

Sec. 601 Prohibition on the use of credit information for most employment decisions

(a)
In general— Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended—
(1)
in subsection (a)(3)(B), by inserting “, subject to the requirements of subsection (b)” after “purposes”; and
(2)
in subsection (b)—
(A)
in paragraph (1)—
(i)
by amending the paragraph heading to read as follows: “Use of consumer reports for employment purposes”;
(ii)
in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively (and conforming the margins accordingly);
(iii)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively (and conforming the margins accordingly);
(iv)
by striking the period at the end of clause (ii) (as so redesignated) and inserting “; and”;
(v)
by striking “agency may furnish” and inserting

“(A) may furnish”

(vi)
by adding at the end the following new subparagraph:

“(B) except as provided in paragraph (5), may not furnish a consumer report for employment purposes, including for the purpose of denying employment, with respect to any consumer in which any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity.”

(B)
by adding at the end the following new paragraphs:

“(5) Requirements for consumer reports bearing on the consumer’s creditworthiness, credit standing, or credit capacity

“(A) In general—A person may use a consumer report for employment purposes with respect to any consumer in which any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity only if—

“(i)(I) the person is required to obtain the report by a Federal, State, or local law or regulation;

“(II) the information contained in the report is being used with respect to a national security investigation (as defined in paragraph (4)(D)); or

“(III) the report is necessary for a background check or related investigation of financial information that is required by a Federal, State, or local law or regulation;

“(ii) none of the cost associated with obtaining the consumer report will be passed on to the consumer to whom the report relates; and

“(iii) the information contained in the consumer report will not be disclosed to any other person other than—

“(I) in an aggregate format that protects a consumer’s personally identifiable information; or

“(II) as may be necessary to comply with any applicable Federal, State, or local equal employment opportunity law or regulation.

“(B) Disclosures—A person who procures, or causes to be procured, a consumer report described in subparagraph (A) for employment purposes shall, in the disclosure made pursuant to paragraph (2), include—

“(i) an explanation that a consumer report is being obtained for employment purposes;

“(ii) the reasons for obtaining such a report; and

“(iii) the citation to the applicable Federal, State, or local law or regulation described in subparagraph (A)(i)(I).

“(C) Adverse actions—In using a consumer report described in subparagraph (A) for employment purposes and before taking an adverse action based in whole or in part on the report, the person intending to take such adverse action shall, in addition to the information described in paragraph (3), provide to the consumer to whom the report relates—

“(i) the name, address, and telephone number of the consumer reporting agency that furnished the report (including, for a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, a toll-free telephone number established by such agency);

“(ii) the date on which the report was furnished; and

“(iii) the specific factors from the report upon which the adverse action (as defined in section 603(k)(1)(B)(ii)) was based.

“(D) National security investigations—The requirements of paragraph (4) shall apply to a consumer report described under subparagraph (A).

“(E) Non-circumvention—With respect to a consumer report in which any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity, if a person is prohibited from using the consumer report pursuant to subparagraph (A), such person may not, directly or indirectly, either orally or in writing, require, request, suggest, or cause any employee or prospective employee to submit such information to the person as a condition of employment.

“(F) Non-waiver—A consumer may not waive the requirements of this paragraph with respect to a consumer report.

“(6) Rule of construction—Nothing in this subsection shall be construed to require a consumer reporting agency to prevent a Federal, State, or local law enforcement agency from accessing information in a consumer report to which the law enforcement agency could otherwise obtain access.”

(b)
Technical amendment— The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by striking “section 604(b)(4)(E)(i)” each place such term appears and inserting “section 604(b)(4)(D)(i)”.
(c)
Rule of construction— The amendments made by this Act may not be construed as limiting the ability of a person to use non-financial or non-credit related consumer report information.