The ordinance, which is already in effect, closely resembles similar laws that have recently been enacted in many cities and states around the country. Under the new law, private employers who have a “principal place of business” or otherwise conduct business in Cook County will be barred from considering current or prospective employees’ credit history – defined as an individual’s record of past borrowing and repaying include information about late payments and bankruptcy, as defined by the law – in employment decision making.
The law does identify several employment positions that are exempt from the credit check prohibition, including:
- Positions requiring bonding or other security under state or federal law;
- Positions allowing custody of, or unsupervised access to, case or marketable assets (as defined by the law) valued at $2,500 or more;
- Positions with signatory authority over business assets of $100 or more per transactions;
- Positions involving managerial responsibility for setting the direction or control of business;
- Positions providing access to personal or confidential information, financial information, trade secrets or state or national security information, as defined by the law;
- Positions meeting the criteria set forth in the administrative rules of the U.S. of Illinois Department of Labor that define the circumstances under which a satisfactory credit history a bona fide occupation requirement; or
- Positions where the use of credit history is otherwise required by, or exempt under, other applicable law.
Also exempt from the ordinance are several distinct institutions, including:
- Any bank holding company, financial holding company, bank, savings bank, savings and loan association, credit union, or trust company authorized to do business under U.S. or Illinois law (including subsidiaries and affiliates of such institutions);
- Any company authorized to engage in any kind of insurance or surety business under the Illinois Insurance Code (including employees and agents acting on behalf of such institutions);
- Any entity defined as a debt collector under federal, state or county law; and
- Any municipal law enforcement, investigative unit or municipal agency requiring use of credit history.
The full text of the law can be found here.
Source: Proskauer Law & the Workplace, 5/28/2015
Posted: June 12, 2015