Texas House Bill HB144

Texas 2019 - 86th Regular

Caption

Relating to the consideration by employers of the consumer credit reports of employees and applicants for employment.

Impact

This bill introduces significant changes to labor laws by enhancing protections for employees and job applicants. By requiring employers to disclose the credit report utilized in making employment decisions and allowing applicants to address any discrepancies or provide context, the bill aims to prevent unjustifiable bias against candidates with potentially poor credit histories. This shift acknowledges the varying implications that credit scores can have on individuals' employment opportunities, particularly in high-stakes financial roles.

Summary

House Bill 144 aims to regulate the use of consumer credit reports by employers when making employment decisions. Specifically, the bill prohibits employers from taking adverse employment actions against current or prospective employees solely based on information contained within their credit reports, unless certain conditions are met. Some critical definitions are provided, including what constitutes an adverse employment action and the roles of applicants and employers in this context.

Contention

Notably, there may be points of contention surrounding the enforcement of this bill and the potential administrative burden placed on employers. While proponents argue that protecting applicants from discrimination based on credit history is necessary for ensuring fair hiring practices, opponents may raise concerns about the added complexity for employers in complying with these requirements. Additionally, some businesses may argue that consulting credit reports is vital for assessing employee reliability, especially in sectors where financial responsibility is paramount.