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Regular Session, 2010
SENATE BILL NO. 529
BY SENATOR BROOME
EMPLOYMENT. Provides relative to consumer credit reports being used for employment.
(8/15/10)
AN ACT1
To enact Part VIII of Chapter 3-A of Title 23 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 23:370 through 370.4, relative to consumer credit reports and3
employment; to provide for findings; to provide for definitions; to provide with4
respect to discrimination based upon consumer credit reports; to provide for5
exceptions; to provide for adverse action; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Part VIII of Chapter 3-A of Title 23 of the Louisiana Revised Statutes of8
1950, comprised of R.S. 23:370 through 370.4, is hereby enacted to read as follows: 9
PART VIII. CONSUMER CREDIT REPORTS AND EMPLOYMENT10
§370. Legislative findings11
A. The Federal Bankruptcy Act prohibits discrimination against a12
consumer who seeks bankruptcy protection; however, no protection exists for13
the consumer who does not seek bankruptcy, but chooses to work through14
difficult financial, credit, and housing circumstances.15
B. The Legislature of Louisiana finds that employers, labor16
organizations, and employment agencies should not use information in17 SB NO. 529
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consumer credit reports for employment decisions or to dictate participation in1
labor organizations. Without the opportunity for employment and housing, a2
consumer cannot establish and maintain or improve creditworthiness or a3
positive financial reputation.4
§370.1. Definitions5
Within this Part, the following terms shall have the following meanings,6
unless the context clearly indicates otherwise:7
(1) "Adverse action" is either of the following:8
(a) The denial of, increase in any charge for, or reduction in the amount9
of insurance or benefits for personal, family, or household purposes.10
(b) The denial of employment or any other decision for employment11
purposes that adversely affects a current or prospective employee.12
(2) "Consumer" is an individual; a person.13
(3) "Consumer report" is a written, oral, electronic, or other14
communication of information by a consumer reporting agency or third-party15
investigation, bearing on a consumer's creditworthiness, credit standing, credit16
capacity, credit score, character, general reputation, or mode of living, and17
includes investigative or background check reports and credit reports that are18
used or expected to be used or collected in whole or in part for either of the19
following purposes:20
(a) The purpose of serving as a factor in establishing the consumer's21
eligibility for credit, insurance, or benefits to be used primarily for personal,22
family, or household purposes.23
(b) Employment purposes.24
(4) "Consumer reporting agency" is an individual, corporation,25
partnership, governmental agency, or any other business, legal, or commercial26
entity, who, for fees, dues, or on a cooperative nonprofit basis, regularly engages27
in whole or in part in the business of assembling or evaluating consumer credit28
information or other information on consumers for the purpose of furnishing29 SB NO. 529
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consumer reports to third parties, and who uses any means or facility of1
commerce for the purpose of preparing or furnishing consumer reports.2
(5) "Employment purposes," when used in connection with a consumer3
report, are uses which are involved in evaluating a consumer for employment4
or for any employment benefit, opportunity, or for pay.5
(6) "Preemployment screening" is the process in which an employment6
agency, or the employer's agent or staff, compiles or edits for the client or7
employer a list of individuals who meet specified criteria and provides this list8
to the client or employer or to a third party on behalf of the client or employer9
for use in soliciting one or more of those individuals for an employment10
interview.11
§370.2. Discriminatory practices12
A. It is an unlawful discriminatory practice for any employer, labor13
organization, or employment agency to use a consumer's credit rating, credit14
score, credit capacity, credit history, or other information from a consumer15
report as a factor in making decisions regarding that person's employment,16
including preemployment screening, hiring, tenure, terms, conditions,17
promotion, retention, privileges of employment, insurance, benefits, pay, or any18
matter directly or indirectly related to employment or for purposes of19
participation in a labor organization.20
B. However, it shall not be considered a discriminatory practice to use21
such information directly or indirectly related to employment or participation22
in a labor organization when the information directly relates to a bona fide23
occupational qualification.24
§370.3. Exceptions25
The provisions of this Part shall not apply to any of the following:26
(1) Employers who are federally insured banks or credit unions.27
(2) Employers who are required by state or federal law to use individual28
credit history for employment purposes.29 SB NO. 529
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(3) The employment of a public safety officer who is a member of a law1
enforcement unit, who is employed as a peace officer commissioned by a city,2
port, school district, mass transit district, parish, Indian reservation, the3
criminal justice division of the United States Department of Justice, the4
Louisiana Lottery Commission, or the governor and who is responsible for5
enforcing the criminal laws of this state or laws and ordinances related to6
airport security.7
(4) The obtaining or use by an employer of information in the credit8
history of an applicant or employee because the information is substantially job-9
related and the employer's reasons for the use of such information are disclosed10
to the employee or prospective employee in writing.11
§370.4. Violations12
A. It shall be a violation of this Part for any employer, labor13
organization, or employment agency in this state to fail to comply with the14
provisions of this Part.15
B. The Louisiana Workforce Commission shall have jurisdiction over16
any claims of discrimination under this Part.17
C. If a consumer who is the object of an adverse action believes that his18
employer, a labor organization, or an employment agency has violated this Part,19
the consumer shall be entitled to the following information from the employer,20
labor organization, or employment agency:21
(1) A copy of the consumer's consumer report utilized in the adverse22
action.23
(2) Notice of the adverse action in writing.24
(3) The name, address, and telephone number of the consumer reporting25
agency or source that supplied the report.26
(4) Notice of the consumer's right to dispute the accuracy or27
completeness of any information the consumer reporting agency or source28
furnished.29 SB NO. 529
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(5) The consumer may request an additional consumer report from the1
agency and it shall be provided within sixty days from request.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Mary Dozier O'Brien.
DIGEST
Present law contains no specific provisions regarding the use of consumer credit reports for
decisions by employers, labor organizations, and employment agencies.
Proposed law provides definitions for the following terms:
1. Adverse action
2. Consumer
3. Consumer report
4. Consumer reporting agency
5. Employment purposes
6. Preemployment screening
Proposed law provides for the elements of an unlawful discriminatory practice for any
employer, labor organization, or employment agency.
Proposed law provides for exceptions.
Proposed law provides for violations of this Part and grants the Louisiana Workforce
Commission jurisdiction over such claims of violation.
Effective August 15, 2010.
(Adds. R.S. 23:370-370.4)