HB657 Summary

• Prohibits employers from using credit reports or credit history to deny employment, discharge employees, or determine compensation and employment terms, except when the applicant has received a job offer and the employer has a substantially job-related bona fide purpose disclosed in writing.

• Identifies positions where credit checks are permissible, including managerial roles, positions with access to personal information or confidential business data, fiduciary positions, and roles with corporate expense accounts or credit cards.

• Allows applicants and employees to file complaints with the Commissioner of Labor, who must investigate promptly and may resolve violations informally or assess civil penalties of up to $500 for initial violations and up to $2,500 for repeat violations.

• Permits employers to request a de novo administrative hearing within 30 days of receiving a penalty order, with the order becoming final if no hearing is requested; allows the commissioner or complainant to enforce final orders in circuit court.

• Exempts financial institutions accepting federally-insured deposits, credit unions, investment advisors registered with the Securities and Exchange Commission, and employers legally required to check credit under federal or state law.