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Les Rosen’s Corner,A monthly column by Lester Rosen, Attorney at Law Maryland Latest State To Res
June 01, 2011 posted by Steve Brownstein
Joining four other U.S. states - Hawaii, Illinois, Oregon, and Washington - prohibiting the use of credit information by employers, Maryland has enacted new legislation placing restrictions on so-called credit checks by employers that use the credit report or credit history of job applicants or employees for employment decisions. The law, known as the 'Job Applicant Fairness Act,' was signed by Maryland Governor Martin O'Malley in April of 2011 and will take effect on October 1, 2011.
Along with prohibiting an employer from using the credit report or credit history of an employee or job applicant for employment purposes, the 'Job Applicant Fairness Act' specifically prohibits most employers from using credit checks to determine whether to:
-Deny employment to a job applicant;
-Discharge an employee;
-Decide compensation; or
-Evaluate other terms and conditions of employment.
-While the Act applies to Maryland employers of any size, some employers wishing to request or use credit information of job applicants and employees for a bona fide purpose must disclose the intent to do so in writing to the job applicant or employee.
If an employer has violated the Act, individuals may file a complaint with the Maryland Commissioner of Labor and Industry for investigation, and the Commissioner may assess civil penalties of up to $500 for initial violations and up to $2,500 for repeat violations.
Excluded from the Act's prohibitions
Jobs such as managerial positions involving handling money or confidential duties,
Employees with expense accounts or corporate credit cards, and
Employees with access to confidential business information.
