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Business Law | New Illinois Law Prohibits Use of Credit Reports in Hiring/Promotions

Jan 3, 2011 | jonadmin | bLAWg | No Comments

Business Law | New Illinois Law Prohibits Use of Credit Reports in Hiring/Promotions

State of Illinois SealRecently, the Illinois Employee Credit Privacy Act took effect.  The law, signed by Governor Pat Quinn in August prohibits many employers from checking credit history of employees or job applicants.  According to Governor Quinn, “This law will stop employers from denying a job or promotion based on information that is not an indicator of a person’s character or ability to do a job well.”  In short, the ability, or inability, to weather the recession should not effect jobs.

The act prohibits employers from basing hiring or promotion from a credit history and also forbids employers from requesting, inquiring, or obtaining a copy of credit reports or credit histories.  However, the law will not affect an employer’s ability to conduct thorough criminal background checks.

There are some exceptions to the law, and if you are a business owner concerned with this issue, you should consult an attorney in order to see if you are within an exception.  Otherwise, be wary, as there are civil liabilities and injunctions available against you.

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