Friday, September 30, 2011
New Credit Check Restrictions for Maryland Employers
Maryland employers should review their policies regarding the use of credit reports when screening prospective employees. A new Maryland law takes effect October 1 that will prohibit employers from using credit reports as part of the hiring process for many job applicants.
The Job Applicant Fairness Act prohibits employers from using an applicant’s credit report or credit history in determining whether to deny employment, discharge the employee, or determine compensation. The new law has two major exemptions: financial institutions and cases where the employer has a bona fide, job-related reason for performing the credit check which has been disclosed in writing to the employee. bona fide, job-related reason for performing the credit check which has been disclosed in writing to the employee.
For more details about the new law, read this helpful article from our friends at Whiteford Taylor Preston LLP.
If you have any questions, contact Maryland Chamber Vice President of Government Affairs Allyson Black at .(JavaScript must be enabled to view this email address).
