New Illinois Law Prohibits Employer Credit Checks In Hiring

On August 11, 2010, the Illinois Employee Credit Privacy Act (“ECPA”) became law. Under the ECPA, which takes effect January 1, 2011, employers cannot use credit history to make decisions regarding hiring, recruiting, discharge or compensation. The statute also prohibits an employer from discriminating against a current employee with respect to a term, condition, or privilege of employment because of the individual’s credit history or credit report. Employers accessing this information can face legal action.

Part of Nationwide Trend

The ECPA is the latest in a nationwide trend towards eradicating credit checks as hiring criteria, except under limited circumstances. Other ...