New Hampshire House Bill HB1385

New Hampshire 2022 Regular Session

• Introduced: 12/1/21
• Refer: 12/1/21
• Report Pass: 2/9/22
• Report DNP: 2/9/22

Caption

Prohibiting the use of credit history in employment decisions.

Impact

The introduction of HB 1385 reflects a significant shift in state labor regulations concerning the private sector's hiring practices. By limiting the potential criteria that employers can utilize when assessing job candidates, the bill seeks to protect individuals from possible discrimination based on credit history. This regulation is particularly relevant in ensuring a fairer job market, especially for those who may have encountered financial difficulties and whose credit reports do not necessarily reflect their skills, qualifications, or job readiness.

Summary

House Bill 1385 aims to prohibit the use of credit history in employment decisions, thereby impacting how employers evaluate potential and current employees. The bill specifies that no employer, labor organization, or employment agency can request or use an individual's credit history for purposes such as hiring, termination, promotion, or compensation, unless certain conditions are met. These conditions include scenarios where compliance with state or federal law is necessary for the use of credit history, the job duties involve financial responsibilities, or the employer has a bona fide purpose directly related to the employment role.

Sentiment

The sentiment surrounding HB 1385 appears to be largely positive among labor rights advocates and organizations that prioritize equal employment opportunities. Proponents argue that the ban on using credit history will foster a more equitable hiring process and mitigate biases against potential employees whose credit history does not align with their professional capabilities. However, there are concerns among some employers about the potential loss of an important decision-making tool that they rely on to protect their businesses from risk.

Contention

Notable points of contention around HB 1385 include debate over the balance between safeguarding individual rights and maintaining necessary employer discretion in hiring practices. Critics of the bill argue that while protecting applicants from discrimination is crucial, some roles that involve financial management could genuinely require credit history assessments to ensure integrity and trust within specific job functions. The discussion highlights the ongoing tension between personal privacy rights and employer rights within the labor market.