85R1778 KKR-F
By: Collier H.B. No. 334
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 52, Labor Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. CONSIDERATION OF CONSUMER CREDIT REPORTS
Sec. 52.081. DEFINITIONS. In this subchapter:
(1) "Applicant" means a person who has made an oral or
written application with an employer, or has sent a resume or other
correspondence to an employer, indicating an interest in
employment.
(2) "Commission" means the Texas Workforce
Commission.
(3) "Consumer" means an individual whose credit
information is used or whose credit score is computed.
(4) "Consumer reporting agency" means any person that,
for monetary fees or dues or on a cooperative nonprofit basis,
regularly engages in the practice of assembling or evaluating
consumer credit information or other information on consumers for
the purpose of furnishing consumer reports to third parties.
(5) "Credit information" means any credit-related
information derived from a credit report or found in a credit
report. The term does not include information that is not
credit-related, regardless of whether that information is
contained in a credit report.
(6) "Credit report" means any written, oral, or other
communication of information by a consumer reporting agency that
bears on a consumer's creditworthiness, credit standing, or credit
capacity.
(7) "Employee" and "employer" have the meanings
assigned by Section 21.002.
Sec. 52.082. RULES. The commission may adopt rules as
necessary to implement this subchapter.
Sec. 52.083. EFFECT ON OTHER LAW. This subchapter does not
limit or affect the rights, remedies, or procedures available to an
individual who alleges an unlawful employment practice prohibited
under federal law, another state law, or an order or ordinance of a
political subdivision of this state.
Sec. 52.084. PROHIBITED ACTS BY EMPLOYER. An employer may
not:
(1) directly or indirectly require, request, suggest,
or cause an employee or applicant, as a condition of employment, to:
(A) submit a credit report or other credit
information; or
(B) authorize the employer's access to the
employee's or applicant's credit report or other credit
information;
(2) use, accept, refer to, or inquire concerning the
employee's or applicant's credit report or other credit
information; or
(3) discharge, discipline, discriminate against, or
deny employment or promotion to an employee or applicant:
(A) on the basis of the employee's or applicant's
credit report or other credit information; or
(B) because the employee or applicant:
(i) refuses, declines, or fails to submit a
credit report or other credit information; or
(ii) refuses, declines, or fails to
authorize the employer access to the employee's or applicant's
credit report or other credit information.
Sec. 52.085. RETALIATION AND COERCION PROHIBITED. (a) An
employer may not discriminate against an employee or applicant
because the individual:
(1) opposes any act or practice prohibited by this
subchapter;
(2) makes or files a charge in connection with an act
or practice prohibited by this subchapter; or
(3) assists, testifies, or participates in any manner
in an investigation, proceeding, or hearing conducted under this
subchapter.
(b) An employer may not coerce, intimidate, threaten, or
interfere with an employee or applicant in the exercise or
enjoyment of, or because the employee or applicant for employment
has exercised, enjoyed, assisted, or encouraged the exercise or
enjoyment of, a right granted or protected by this subchapter.
Sec. 52.086. ADMINISTRATIVE PENALTY. (a) An employer
commits an administrative violation if the employer violates this
subchapter.
(b) The penalty for a violation under this section may not
exceed $9,000. In assessing a penalty under this section, the
commission shall consider:
(1) prior violations of this subchapter by the
employer;
(2) the severity of the violation; and
(3) any other factor the commission determines to be
relevant.
Sec. 52.087. CIVIL ACTION BY EMPLOYEE OR APPLICANT. (a) An
employee or applicant aggrieved by a violation of this subchapter
may bring a civil action to enforce rights protected by this
subchapter, including an action for appropriate injunctive relief,
in the district court in the county in which the alleged violation
occurred or in which the alleged violator's residence or principal
place of business is located.
(b) An action under this section must be brought not later
than the third anniversary of the date of the violation.
(c) The employer of an employee or applicant who prevails in
a civil action under this section is liable to the affected employee
or applicant for damages equal to the amount of any wages, salary,
employment benefits, or other compensation denied or lost to the
employee or applicant by reason of the violation or, if wages,
salary, employment benefits, or other compensation has not been
denied or lost, any actual monetary losses sustained by the
employee or applicant as a direct result of the violation.
(d) An employer described by Subsection (c) is also liable
for equitable relief as appropriate, including employment,
reinstatement, and promotion.
(e) In addition to any judgment awarded to an employee or
applicant, the court may require the employer to pay reasonable
attorney's fees, reasonable expert witness fees, and other costs.
Sec. 52.088. CIVIL ACTION BY COMMISSION. (a) The
commission may bring an action to restrain violations of this
subchapter.
(b) In an action brought under this section, the court may:
(1) issue a temporary or permanent restraining order
or injunction to require compliance with this subchapter; and
(2) order any equitable relief as appropriate,
including employment, reinstatement, and promotion.
Sec. 52.089. NONAPPLICABILITY. (a) This subchapter does
not apply to:
(1) an employee in or an applicant for:
(A) a position for which disclosure or
consideration of a credit report or other credit information is
required by law or by a self-regulated industry organization;
(B) a position as a peace officer as defined by
Article 2.12, Code of Criminal Procedure;
(C) a position that requires a surety or other
type of bond;
(D) a position that requires federal or state
security clearance;
(E) a position that is nonclerical and that has
regular access to trade secrets, intelligence information, or
national security information;
(F) a managerial position which involves setting
the direction or control of a business or a division, unit or agency
of a business, and that has financial responsibility over an
employer's funds or assets worth at least $10,000; or
(G) a managerial position that:
(i) involves setting the direction or
control of a business or a division, unit or agency of a business,
and that involves digital security systems, including controlling
access to all parts of an employer's computer system; and
(ii) does not include all members in an
employer's information technology department or a person who has
access to a computer system or network available to employees
generally; or
(2) an employer engaged in financial services.
(b) The exemptions provided by Subsection (a)(1) apply only
to the specific position that an employee is in or for which an
applicant applies and not the employee or the applicant generally.
An employer or industry as a whole is not exempt from the
requirements of this subchapter.
(c) For purposes of this section:
(1) "Employer engaged in financial services" means:
(A) a bank, savings and loan association or
savings bank, credit union, or other depository institution or its
subsidiaries or affiliates;
(B) a mortgage banker or residential mortgage
loan company;
(C) a securities firm or registered financial
advisory firm;
(D) a regulated loan company; or
(E) an insurance company or insurance agency.
(2) "Trade secret" means:
(A) confidential or proprietary business
information; or
(B) information, including a formula, pattern,
compilation, program, device, method, technique, or process that:
(i) derives independent economic value,
actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who
could obtain economic value from the disclosure or use of the
information; and
(ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.
SECTION 2. This Act applies only to an adverse employment
action that is taken by an employer against an employee or applicant
for employment or other employer conduct that occurs on or after
January 1, 2018. Action taken by an employer or other conduct that
occurs before January 1, 2018, is governed by the law in effect
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.