Summary

Prohibits employers from using consumer credit reports that include information about a person’s creditworthiness for hiring, firing, promoting, or other employment decisions. The ban applies even if the job applicant or employee consents, with two narrow exceptions: positions requiring eligibility for access to classified national security information and uses that are specifically required by other law. The change also updates related Fair Credit Reporting Act provisions with technical and conforming edits.

Key Points

• Employers are barred from using consumer credit reports that include creditworthiness information for employment decisions.
• The prohibition applies even if the job applicant or employee consents.
• Two exceptions are preserved: positions requiring eligibility for access to classified national security information, and uses otherwise required by law.
• Existing FCRA notice and adverse-action procedures still apply when credit reports are used lawfully.
• Employers, HR teams, and background-check vendors must update policies, forms, and vendor agreements to comply.
• The amendment includes technical and conforming edits to the FCRA to integrate the new rule.
• The change sets a uniform federal limit on employment-related credit checks, reducing variability across employers.
• No new spending, tax changes, or emergency designations are created by this amendment.

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