Texas House Bill HB1330

Texas 2021 - 87th Regular

Caption

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

Impact

By introducing this legislation, the bill intends to enhance transparency and fairness in the hiring process. It requires that employees and applicants be informed about the information in their credit reports that affected employment decisions, allowing them the opportunity to explain or contest this information before any adverse action is finalized. This move is positioned as a consumer protection measure, aiming to prevent discrimination based on credit history, which can disproportionately affect individuals from lower socioeconomic backgrounds.

Summary

House Bill 1330 aims to regulate the impact of consumer credit reports on employment decisions in Texas, specifically concerning how employers may use these reports when making employment-related decisions. The bill stipulates that employers cannot take adverse actions—such as denying employment—based on an applicant's or employee's credit report unless specific conditions are met. These conditions require employers to provide a copy of the credit report along with written instructions on how the employee or applicant may respond to any adverse information found in the report.

Contention

While supporters of HB 1330 argue that it provides essential protections for job seekers against unjust employment practices, opponents may view it as an unnecessary restriction on employers' ability to assess candidates. There could be concerns about the potential for increased liability for employers if adverse decisions are questioned. Critics might argue that employers benefit from having access to comprehensive information about potential hires and that limiting access to credit reports could hinder their ability to make well-informed hiring decisions.