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Equal Employment for All Act of 2021
12/30/2022, 5:32 PM
Summary of Bill HR 3697
The bill argues that using credit history as a basis for employment decisions can unfairly discriminate against individuals who may have faced financial hardships or challenges in the past. It also highlights that credit history is not necessarily a reliable indicator of an individual's ability to perform a job effectively.
If passed, the Equal Employment for All Act of 2021 would amend the Fair Credit Reporting Act to make it illegal for employers to request or use an individual's credit report for employment purposes. The bill would also provide individuals with the right to take legal action against employers who violate this prohibition. Supporters of the bill argue that it is necessary to protect individuals from unfair employment practices and to promote equal opportunities in the workforce. However, opponents may argue that employers should have the right to consider all relevant information when making hiring decisions. Overall, the Equal Employment for All Act of 2021 aims to promote fairness and equality in the workplace by prohibiting the use of credit history as a factor in employment decisions. It is currently under review by Congress and may face further debate and amendments before potentially becoming law.
Congressional Summary of HR 3697
Equal Employment for All Act of 2021
This bill prohibits a consumer reporting agency from furnishing an employer with a consumer credit report containing information on the consumer's creditworthiness, credit standing, or credit capacity if the employer intends to use that information for any decision made for employment purposes.
An employer may use such a report in either an employment decision or before taking an adverse employment action with the consumer's authorization under certain circumstances. Specifically, a report may be used if the consumer applies for or holds employment that requires eligibility for access to classified information or such use is otherwise required by law.
An employer who has sought such a report may neither deny employment to nor make any other employment decision about a consumer because the consumer has not authorized the employer's procurement of the report.
