Texas House Bill HB334

Texas 2017 - 85th Regular

• Filed: 11/15/16

Caption

Relating to the consideration by employers of the consumer credit reports or other credit information of employees and applicants for employment; providing civil and administrative penalties.

Impact

This bill has significant implications for employer-employee relationships and labor laws within the state. It introduces new restrictions on how employers can evaluate potential hires and current employees based on their creditworthiness, thereby requiring employers to seek alternative means of assessing candidates for employment. This change is expected to foster a more equitable job market, particularly for individuals who may have poor credit due to unrelated issues, such as medical emergencies or economic downturns.

Summary

House Bill 334 aims to regulate the use of consumer credit reports by employers in Texas. Specifically, it prohibits employers from requiring employees or job applicants to submit credit reports as a condition of employment. Additionally, the bill outlines that employers cannot discharge or discriminate against individuals based on their credit information. The intention of this legislation is to protect applicants and employees from potential biases that could arise from their credit history, thereby promoting fair employment practices.

Contention

However, the bill has faced notable points of contention regarding its potential impact on certain industries, particularly those that traditionally examine credit history as a standard practice. Critics argue that while the bill safeguards individual rights, it could hinder employers in the financial services sector or those requiring high levels of trustworthiness from their employees from making informed hiring decisions. Proponents assert that credit history is not always a reliable indicator of an individual's job performance or behavior, thus supporting the bill as a crucial consumer protection measure.