2023 -- S 0477
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LC002133
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY
EMPLOYMENT PROTECTIO N ACT -- DECEPTIVE TRADE PRAC TICES
Introduced By: Senators Kallman, Zurier, Miller, Lawson, Mack, Valverde, and Gu
Date Introduced: March 07, 2023
Referred To: Senate Commerce
It is enacted by the General Assembly as follows:
SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR RELATIONS" 1
is hereby amended by adding thereto the following chapter: 2
CHAPTER 6.15 3
CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT 4
28-6.15-1. Prohibition of the use of credit history in hiring process. 5
Employers are prohibited from asking questions about a job applicant's financial past 6
during job interviews or posing questions about the applicant's credit history on its job application. 7
Employers shall not seek or use credit checks while making a hiring decision. 8
28-6.15-2. Exceptions. 9
(a) The prohibitions contained in § 28-6.15-1 shall not apply to employment which: 10
(1) Requires a credit check pursuant to the provisions of federal or state law; 11
(2) Requires a national security clearance; 12
(3) Has signatory authority over third-party funds or assets worth ten thousand dollars 13
($10,000) or more; 14
(4) Are non-clerical positions with regular access to trade secrets, intelligence information 15
or national security information; or 16
(5) Are positions with regular duties allowing the employee to modify digital security 17
systems, which are established to prevent the unauthorized use of the employer's or client's 18
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networks or databases. 1
(b) If the available position falls within one of the exceptions listed in subsection (a) of this 2
section, prior to conducting a credit check on the applicant, an employer shall: 3
(1) Provide notice to the job applicant that the employer shall seek their credit report; and 4
(2) Obtain written authorization/consent from that job applicant authorizing the credit 5
check. 6
28-6.15-3. Administrative investigations and penalties. 7
(a) Whenever a job applicant alleges a violation of this chapter, the applicant may file a 8
complaint with the department of labor and training and describe in detail the nature and basis of 9
the applicant's claim, along with providing any supporting written documentation. 10
(b) Pursuant to an adjudicatory proceeding, the department shall investigate the alleged 11
violations, and may impose an administrative penalty of up to ten thousand dollars ($10,000) for 12
each violation. During its penalty determination phase, the department shall be guided by the 13
following factors: 14
(1) The severity of the violation; 15
(2) The existence of prior violations; 16
(3) The employer's size, considering both the total number of employees and its revenue; 17
and 18
(4) The employer's actual or constructive knowledge of this chapter. 19
(c) The assessed penalty shall be equally divided between the department and the 20
complainant. 21
SECTION 2. Section 6-13.1-21 of the General Laws in Chapter 6-13.1 entitled "Deceptive 22
Trade Practices" is hereby amended to read as follows: 23
6-13.1-21. Credit reports — Notice to individual — Requirements of users of credit 24
reports. 25
(a) No person or business shall request a credit report in connection with a consumer’s 26
application for credit, employment, or insurance unless a consumer is first informed that a credit 27
report may be requested in connection with the application. 28
(b) Whenever credit or insurance for personal, family, or household purposes, or 29
employment involving a consumer is denied or the charge for that credit or insurance is increased 30
either wholly or partly because of information contained in a credit report from a credit bureau, the 31
user of the credit report shall advise the consumer against whom the adverse action has been taken 32
and supply the name and address of the credit bureau making the report. 33
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SECTION 3. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY
EMPLOYMENT PROTECTIO N ACT -- DECEPTIVE TRADE PRAC TICES
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This act would prohibit employers from seeking or using credit reports in making hiring 1
decisions concerning prospective employees, asking questions about the applicant's financial past 2
during its interviews, or including credit history questions within their job applications. It would 3
also authorize the department of labor and training to impose administrative fines against the 4
offending employer. 5
This act would take effect upon passage. 6
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LC002133
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