Philadelphia the latest city to restrict the use of credit information in employment decisions

Philadelphia Bill No. 160072 amends the city’s Fair Practices Ordinance and will prohibit employers in the City of Philadelphia from procuring or using applicants’ or employees’ credit information for employment purposes.


The law, which will go into effect on July 7, defines “credit information” as any “written, oral, or other communication of information regarding a person’s debt; credit worthiness, standing, capacity, score or history; payment history; charged-off debts; bank account balances or other information; or bankruptcies, judgments, liens, or items under collection.”

Exempt from the law are financial institutions, law enforcement agencies and any employers required by state or federal law to obtain credit information on applicants or employees.

Additionally, according to the law firm Littler Mendelson, there are several different types of jobs singled out from the exempted job types mentioned previously. The job types listed below create special rules for when credit information is used:

a.         jobs requiring the employee to be bonded under city, state, or federal law;

b.         jobs that are supervisory or managerial in nature and involve setting the direction or policies of a business or a division, unit or similar part of a business;

c.         jobs involving significant financial responsibility to the employer, including the authority to make payments, transfer money, collect debts, or enter into contracts, but excluding jobs that involve handling retail transactions;

d.         jobs requiring access to financial information pertaining to customers, other employees, or the employer, other than information customarily provided in a retail transaction; and

e.         jobs requiring access to confidential or proprietary information that derives substantial value from secrecy.

If an employer is considering taking an adverse action against an applicant or employee for one of the aforementioned job types based in whole or in part on credit information, the employer must notify the applicant in writing of such decision and its basis, and must provide the applicant with a copy of the credit information used to arrive at the decision. The employer must then give the employee or applicant an opportunity to explain the circumstances surrounding the information at issue or dispute the accuracy of the information before taking any such adverse action.

With the signing of this bill, Philadelphia joins the likes of California, Chicago, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, New York City, Oregon, Vermont and Washington as jurisdictions that have enacted similar legislation to restrict the use of credit information in employment decisions.

To read the full text of the bill, click here.

Source: Littler Mendelson, 6/20/2016

Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
Something went wrong. Try again
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Something went wrong. Try again

Get In Touch

Send a Message *fields required

What are your Interests?optional

Even our RFP PROCESS is state-of-the-art.

Find out why

What Our Clients Are Saying

Everyone I have contacted at Certiphi has been a complete pleasure to work with. The Certiphi customer service rivals every other customer service I come in contact with. Everyone is always so professional, yet super nice! Thanks for all you do and keep up the amazing work and impeccable service that you provide!!!

Human Resources Assistant
Large Medical Staffing Firm

Thank you so much! You have such an incredible reputation within our office; I think we would all say your customer service levels are continually at about 125%!

Human Resources Generalist
Medical and Surgical Hospital

The response time has been very quick. The turnaround times are great. I love your systems and that I can go in and look at the process as its going.

Human Resources Manager
Medical Staffing Agency

It’s such a great customer service that you provide and I’m happy to tell that to anyone.

Pastoral Care Associate
Large Children's Hospital

Working with Certiphi has been such a pleasure. Certiphi has taught me so much, not just about backgrounds but also the meaning of great business.

Human Resources Specialist
Large Medical Staffing Firm

We flew through our NCQA licensure review.  We very much appreciate Certiphi's help in earning a 100% score for the files!

Accreditation Manager
Hospital System Analytics Company

You are about to leave

Ok, Continue Cancel