Philadelphia, PA Bans Use Of Credit Information In Employment Decisions

Effective as of July 7, 2016, amendments to the Philadelphia, PA Fair Practices Ordinance make it an unlawful discriminatory practice for an employer to procure, seek to procure, or use an applicant's or employee's credit information in connection with making any decisions relating to an individual's hire, discharge, tenure, promotion, discipline, or in consideration of any other term or condition of employment.

For purposes of this ordinance, "credit information" is defined as any written, oral, or other communication of information regarding a person's debt; credit worthiness, standing, capacity, score or history; payment history; charged-off debts; bank account balances or other information; or bankruptcies, judgments, liens, or items under collection.

Financial institutions - defined as any bank, savings and loan association, credit union, trust company, insurance or surety company, bank holding company, financial holding company, investment advisor, broker-dealer, entity registered with the U.S. Securities and Exchange Commission, or any subsidiary or affiliate thereof - are exempt from the law's requirements, as are law enforcement agencies. Additional exceptions exist if credit information must be obtained under federal or state law, or if the position in question:

is supervisory or managerial in nature and involves setting the direction or policies of a business or a division, unit or similar part of a business; involves significant financial responsibility to the employer, including...