Model Legislation

MINNESOTA

SF 523 (2013) Employers’ criminal history reliance for job applicants – limitations and remedies imposition

Summary: This bill amends existing statute that prohibits public employers from requiring criminal history disclosure on applications, to include private employers.  With the passage of this bill, both public and private employers cannot require disclosure of criminal history until after the application phase.

This statute does not apply, however, to employment opportunities where disclosure is mandated by law.  This bill also creates remedies for applicants when an employer has violated this law.  

Goals: This bill will prevent people from being removed from the hiring process due to prior criminal convictions.  Bill passage may also encourage more people to apply for jobs without fear that their applications will be unfairly considered because of prior convictions. 

Concerns: Waiting until after the application phase to inquire about criminal history can be costly and time-consuming for employers, especially if many applicants are removed from consideration and the employer has to extend its hiring process.

RHODE ISLAND

HB 5507 (2013) An Act Relating to Labor and Labor Relations – Fair Employment Practices

Summary: This bill prohibits an employer from inquiring into an applicant’s criminal history before the first interview.  The employer has the ability to inquire about criminal history at the first interview or thereafter. 

Goals: HB 5507 looks to increase opportunity and job placement for ex-offenders.

Concerns:  Waiting until after the first interview to ask about criminal history can be costly for employers and a waste of time if applicants are going to be selected out of the process.

CONNECTICUT

SB 361 (2011) An Act Preventing the Use of Credit Scores by Certain Employers in Hiring Decisions

Summary: This bill provides that a public or private employer may not require an employee or a prospective employee to disclose credit information, such as their credit score, credit account balance, payment history, savings or checking account balances, or account numbers as a condition of employment unless:  

1. the employer is a financial institution,
2. the report is required by law,
3. the employer has reason to believe that the employee has engaged in activity that is a violation of law related to the employee’s employment,
4. the report is substantially related to the employee’s current or potential job, or
5. the employer has a good faith purpose for requesting or using information in the credit report that is substantially job-related and is disclosed in writing to the employee or applicant.

Goals: Because no evidence has linked a person’s ability to perform his/her job and credit history, this bill is aimed at decreasing the use of credit reports in hiring decisions while still maintaining reasonable exceptions.   

Concerns: Although an applicant is not required to disclose his/her credit information or history on the application, the employer still reserves the right to inquire about credit information at the interview.  This may create an opportunity for applicants to be selected out if they disclose that information.

CALIFORNIA

AB 22 (2011) An Act to…Amend the Labor Code, Relating to Employment

Summary: This bill prohibits an employer or prospective employer, with the exception of certain financial institutions, from obtaining a consumer credit report, for employment purposes.  Exceptions to this law include positions in the state Department of Justice, a managerial position, or a position where the employee would be a named signatory on a credit card or bank account for the employer.   This bill also requires the applicant or employee be provided written notification that his/her credit report is being sought and the reasons why. 

Goals: This bill would prevent those with poor and low credit scores from being prematurely removed from job consideration.  In times with high rates of unemployment and economic downturn, it is not unusual for credit scores to suffer.  By keeping credit scores from being a deciding factor, more people can become employed. 

Concerns: Credit reporting agencies, manufacturing groups, and businesses have argued that credit reports can indicate whether a potential employee can act responsibly and reliably, especially when handling money, and have cautioned against employers not being able to use credit reports.

NEVADA

AB 181 (2013) An Act Relating to Employment…

Summary: Parts of this bill prohibit a private employer from conditioning employment of an employee or a prospective employee on the disclosure of a username, password, or anything else that provides access to social media accounts.  It also prevents an employer from taking adverse action (firing, disciplining, discriminating against, or failing to hire) against an employee or prospective employee for nondisclosure.  Exceptions to the law allow an employer to ask for the username and password of another service that is not a social media platform, in order to access the employer’s internal computer or information system.

Goals: This bill provides more coverage and protection to current and prospective employees by maintaining their privacy. 

Concerns: The bill does not prevent an employer from using information about an employee’s social media activities that is voluntarily provided by another employee.  It also does not leave exceptions for employers who are investigating workplace misconduct or harassment.