Sponsors (5)
The bill reduces employers' use of credit histories—boosting privacy and fairness for job applicants—while imposing compliance costs and limiting employers' access to credit data for certain financially sensitive roles.
Job applicants and employees are protected from employers using credit-history for hiring or adverse actions, reducing the role of credit checks in employment decisions.
Consumers—especially low-income individuals—face a lower risk of employment discrimination based on creditworthiness, improving fairness in hiring.
Consumers' financial privacy is strengthened by limiting the flow of sensitive credit data to employers and consumer reporting agencies.
Employers and consumer-reporting agencies will incur compliance costs to update hiring procedures, reporting systems, and make conforming changes to follow the new prohibitions.
Employers—particularly small businesses hiring for financial-responsibility roles—will have reduced access to credit information they previously used to evaluate candidates, which may increase hiring risk for certain positions.
Employers hiring for classified or legally constrained roles (e.g., federal or military positions) face additional administrative burden to ensure exceptions, disclosures, and notification rules are followed.
Based on analysis of 2 sections of legislative text.
Prohibits employers from obtaining or using credit-related consumer reports for hiring or adverse employment decisions, with narrow national-security and legal exceptions.
Introduced September 15, 2025 by Stephen Cohen · Last progress September 15, 2025
Stops employers and job applicants’ prospective employers from getting or using consumer credit reports or investigative reports that include credit information to make hiring, firing, promotion, pay, or other adverse employment decisions. The ban applies even if an applicant or employee consents, with narrow exceptions for positions that require classified or national security access or when a law specifically requires the credit check; those exceptions keep existing disclosure and notice rules. The bill also updates cross-references in the Fair Credit Reporting Act and limits when consumer reporting agencies may furnish credit-related reports to employers.