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Employers May Have Fewer Options for Screening Potential New Hires

by | Nov 26, 2012 | Business Articles, Corporate Law

HB 2619 May Limit Employer Inquiries

In September, Pennsylvania State Representative Thomas Murt introduced H.B. 2619.  The bill, if enacted, will amend the Pennsylvania Human Relations Act to keep employers from requiring applicants to consent to the employer viewing the applicant’s credit report. 

Under the proposed legislation, private employers would only be allowed to require a credit report if the type of information contained in a credit report is substantially related to an employee’s current or prospective job, if the report is otherwise required by law, or if the employer is the Office of the Attorney General, the Pennsylvania State Police or other law enforcement agency.

The bill defines “substantially related” as one of the following:

  1. A managerial position which involves setting the direction or control of the business;
  2. A position that involves access to customers’, employees’ or the employer’s personal or financial information other than information customarily provided in a retail transaction;
  3. A position that involves a fiduciary responsibility to the employer, including, but not limited to, the authority to issue payments, transfer money or enter into contracts;
  4. A position that requires access to confidential or proprietary information that derives value from secrecy and efforts are made to keep it secret; or
  5. A position that involves regular access to cash totaling $10,000 or more during the work day.

The bill is currently referred to committee.  If passed,Pennsylvaniawill join eight other states in limiting employers’ use of credit information. California,Connecticut,Hawaii,Illinois,Maryland,Oregon,VermontandWashingtonhave already passed similar laws.

For help with employment-related questions, or any other legal matters related to your business, the attorneys at the Scolieri Law Group, P.C. can help.  Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way.  Contact us today at (412) 765-0546 or via email at info@scolierilaw.com.