Washington, D.C. is set to join 11 states and two other cities (New York City & Chicago) in passing a law prohibiting employers from using credit history information to make hiring decisions. On February 16, 2017 Mayor Bowser of Washington, D.C. signed the Fair Credit in Employment Amendment Act of 2016.
The new law will work in tandem with the District’s 2014 ‘ban-the-box’ law that prohibits employers from asking applicants about their criminal history before making a conditional offer of employment. Applicants will not be made to offer “any written, oral, or other communication of information bearing on an employee’s credit worthiness, credit standing, credit capacity, or credit history.”
There are a few exceptions to this law which include:
- D.C. law requires that employer request or use individual credit information
- D.C. law that requires security clearance
- Position requires to personal access to financial information
- Employer requests or receives credit information pursuant to a lawful subpoena, court order, or law enforcement investigation
This law continues trend that restricts how employers may screen prospective applicants or current employees. Whether it’s criminal or credit history, employers need to know if there are any state or local laws prohibiting or restricting their use when making hiring decisions.
Visit our website to access our Ban the Box Guide and Credit Report Guide to learn more about this topic.
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Here is a link to more information on this new law: Washington D.C. Set to Prohibit Use of Credit History in Employment Decisions