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Fair Hiring in Banking Act
3/8/2023, 8:26 PM
Summary of Bill HR 5911
Under this legislation, banks would be prohibited from using credit reports as a determining factor in the hiring process for most positions. The bill makes exceptions for certain positions that require a credit check for security or fiduciary reasons, such as those involving access to sensitive financial information.
The Fair Hiring in Banking Act also includes provisions to ensure that individuals are not unfairly penalized for past financial hardships or mistakes. Employers would be required to provide applicants with a copy of their credit report and an explanation of any negative information that was used in the hiring decision. Overall, the goal of this bill is to promote fairness and equal opportunity in the banking industry by eliminating discriminatory hiring practices based on credit history. It seeks to create a more inclusive and diverse workforce within the banking sector.
Congressional Summary of HR 5911
Fair Hiring in Banking Act
This bill creates exceptions to the restriction on hiring persons convicted of certain criminal offenses involving dishonesty or a breach of trust to a position with an insured depository institution or an insured credit union. Currently, a waiver must be obtained from the Federal Deposit Insurance Corporation or the National Credit Union Administration to allow the employment of such a person.
Specifically, a waiver is not needed if it has been 7 years or more since the offense occurred or if the individual was incarcerated with respect to the offense and it has been 5 years or more since the individual was released from incarceration. The need for a waiver also does not apply to conduct committed before age 21 and if it has been at least 30 months since the sentencing. Individuals with a criminal record that is expunged, sealed, or pardoned are also exempt from waiver requirements.
