There is a new law that bans credit checks on potential new hires. Below is an article from the Chicago Tribune that discusses the law.
Illinois employers will no longer be able to run credit checks on those applying for jobs under a measure Gov. Pat Quinn signed into law today.
Supporters say the move is aimed at preventing employers from turning away job seekers due to poor credit amid an economic crisis that has left many unemployed and struggling to pay the bills.
“If you lose your job and your credit is damaged as a result, and employers use your credit to prevent you from getting a job, this is a vicious cycle folks will never get out,” said Sen. Don Harmon, an Oak Park Democrat who sponsored the legislation.
Under the new law that takes effect Jan. 1, employers cannot use credit history to determine whether to hire, fire or promote someone. If an employer is caught accessing such information, they can face legal action.
However, some industries and positions are exempt, such as those dealing with banking, insurance, trade secrets or state and national security.
Proponents say pre-employment credit checks are on the rise even as many people’s credit history has taken a beating in recent years. Quinn said the checks act as “an artificial way to keep people from employment,” and he blamed over zealous credit report companies for selling an unnecessary product to employers.
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