Bill Text: IN SB0261 | 2012 | Regular Session | Introduced
Bill Title: Use of credit reports for employment purposes.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2012-01-04 - First reading: referred to Committee on Pensions and Labor [SB0261 Detail]
Download: Indiana-2012-SB0261-Introduced.html
Introduced Version
SENATE BILL No. 261
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-5-7.
Synopsis: Use of credit reports for employment purposes. Prohibits an
employer from using a credit report in the process of hiring a
prospective employee or in determining whether to continue the
employment of an employee. Provides that an employee or prospective
employee may bring a civil action against an employer for violating
this prohibition. Provides for an award of actual damages, court costs,
and attorney's fees to an aggrieved individual, along with an injunction
against the employer's further use of credit reports in violation of the
prohibition.
Effective: July 1, 2012.
Taylor, Simpson, Arnold, Breaux,
Broden, Hume, Lanane, Mrvan,
Randolph, Rogers, Skinner, Tallian,
Young R
January 4, 2012, read first time and referred to Committee on Pensions and Labor.
Introduced
Second Regular Session 117th General Assembly (2012)
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SENATE BILL No. 261
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 22-5-7; (12)IN0261.1.1. -->
SECTION 1. IC 22-5-7 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]:
Chapter 7. Prohibition Concerning the Use of Credit Reports for Employment Purposes
Sec. 1. As used in this chapter, "credit report" means a written, oral, or other communication of information by a consumer reporting agency concerning the:
(1) creditworthiness;
(2) credit standing; or
(3) credit capacity;
of a consumer.
Sec. 2. As used in this chapter, "trade secret" has the meaning set forth in IC 24-2-3-2.
Sec. 3. (a) Except as provided in subsection (b), an employer shall not use a credit report:
(1) in the process of hiring a prospective employee; or
(2) in determining whether to continue the employment of an employee.
(b) An employer may use a credit report for employment purposes if:
(1) the information contained in the credit report is substantially job related in that the employment position or prospective employment position of the individual for whom the credit report is sought has access to:
(A) money;
(B) other assets; or
(C) trade secrets or other confidential information; or
(2) the employment position of the individual for whom the report is sought is a:
(A) managerial position;
(B) position in the office of the attorney general created by IC 4-6-1-2;
(C) sworn law enforcement position; or
(D) position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer.
(c) This section does not apply to a person or business subject to:
(1) Sections 6801 through 6809 of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); or
(2) state or federal statutes or regulations implementing the Sections referred to in subdivision (1);
if the person or business is subject to compliance oversight by a state or federal regulatory agency with respect to the Sections referred to in subdivision (1).
Sec. 4. (a) An employee or prospective employee may bring a civil action against an employer to enforce section 3 of this chapter.
(b) In an action brought under subsection (a) in which an employer is found to have violated section 3 of this chapter, the court may do the following:
(1) Award:
(A) actual damages; and
(B) court costs and reasonable attorney's fees;
to the prevailing employee or prospective employee.
(2) Enjoin the employer from committing further violations of section 3 of this chapter.
Sec. 5. This chapter does not limit an employee's or prospective employee's rights or remedies under any other state or federal law.
Chapter 7. Prohibition Concerning the Use of Credit Reports for Employment Purposes
Sec. 1. As used in this chapter, "credit report" means a written, oral, or other communication of information by a consumer reporting agency concerning the:
(1) creditworthiness;
(2) credit standing; or
(3) credit capacity;
of a consumer.
Sec. 2. As used in this chapter, "trade secret" has the meaning set forth in IC 24-2-3-2.
Sec. 3. (a) Except as provided in subsection (b), an employer shall not use a credit report:
(1) in the process of hiring a prospective employee; or
(2) in determining whether to continue the employment of an employee.
(b) An employer may use a credit report for employment purposes if:
(1) the information contained in the credit report is substantially job related in that the employment position or prospective employment position of the individual for whom the credit report is sought has access to:
(A) money;
(B) other assets; or
(C) trade secrets or other confidential information; or
(2) the employment position of the individual for whom the report is sought is a:
(A) managerial position;
(B) position in the office of the attorney general created by IC 4-6-1-2;
(C) sworn law enforcement position; or
(D) position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer.
(c) This section does not apply to a person or business subject to:
(1) Sections 6801 through 6809 of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); or
(2) state or federal statutes or regulations implementing the Sections referred to in subdivision (1);
if the person or business is subject to compliance oversight by a state or federal regulatory agency with respect to the Sections referred to in subdivision (1).
Sec. 4. (a) An employee or prospective employee may bring a civil action against an employer to enforce section 3 of this chapter.
(b) In an action brought under subsection (a) in which an employer is found to have violated section 3 of this chapter, the court may do the following:
(1) Award:
(A) actual damages; and
(B) court costs and reasonable attorney's fees;
to the prevailing employee or prospective employee.
(2) Enjoin the employer from committing further violations of section 3 of this chapter.
Sec. 5. This chapter does not limit an employee's or prospective employee's rights or remedies under any other state or federal law.
