Sponsors (12)
The bill expands worker privacy and reduces credit-based barriers to employment—improving access for people with poor credit—but shifts costs and uncertainty onto employers and regulators by restricting a commonly used source of background information.
Middle-class families, uninsured people, and others with damaged credit will face fewer employment denials based on credit-related consumer reports, reducing financial-discrimination and protecting consumer financial privacy.
Workers with poor credit (e.g., from medical debt or job loss) will have improved access to hiring and promotion opportunities, increasing labor-market access for affected jobseekers.
Employers who legitimately need credit information for classified or national-security roles retain a narrow, clear exception, preserving hiring ability for positions that require security vetting.
Small businesses and other employers will have less credit-related information for vetting hires, potentially raising hiring risk, increasing screening time or costs, and making some roles harder to assess.
Employers and state regulators that previously relied on lawful credit checks will face new compliance processes and administrative burdens to follow the law's limits, creating ongoing regulatory costs and uncertainty.
Prohibiting adverse employment actions based on credit reports—even when consumers consent—will limit employers' ability to consider information they view as legally relevant, potentially impeding some legitimate hiring decisions.
Based on analysis of 2 sections of legislative text.
Bars employers from obtaining or using consumer credit or investigative reports for hiring or adverse employment actions, with narrow national-security and legal exceptions.
Official title: Amend the Fair Credit Reporting Act to prohibit the use of consumer credit checks against prospective and current employees for the purposes of making adverse employment decisions.
Introduced September 15, 2025 by Elizabeth Warren · Last progress September 15, 2025
Bans employers and prospective employers from obtaining or using consumer credit reports or investigative consumer reports that include creditworthiness, credit standing, or credit capacity for hiring or other employment decisions, regardless of employee consent, with narrow exceptions for positions that require access to classified national security information or when a statute requires the use. Keeps existing FCRA disclosure and notification rules, adds conforming edits to FCRA cross-references, and creates a limited authorization pathway that still forbids adverse action if a job applicant declines to allow such a report.