SECTION 1. Chapter 52, Labor
Code, is amended by adding Subchapter H to read as follows:
SUBCHAPTER H.
CONSIDERATION OF CREDIT REPORT BY EMPLOYER
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
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 credit information or other information on
individuals for the purpose of furnishing credit reports to third parties.
(4) "Credit
report" means any written, oral, or other communication of information
by a consumer reporting agency that bears on an individual's
creditworthiness, credit standing, or credit capacity.
(5) "Employee"
and "employer" have the meanings assigned by Section 21.002.
(6) "Employer engaged in or regulating 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;
(E) an insurance company or insurance agency; or
(F) a state agency responsible for regulating an entity
described by Paragraph (A), (B), (C), or (D).
Sec. 52.082. CREDIT
REPORT SUBSTANTIALLY RELATED TO EMPLOYMENT POSITION. A credit report is
considered to be substantially related to an employee's or applicant's
employment position or prospective employment position if the position:
(1) is a managerial
position which involves setting the direction or control of a business or a
division, unit, or agency of a business;
(2) involves access to
customers', employees', or the employer's personal or financial
information, other than information customarily provided in retail
transactions;
(3) involves a fiduciary
responsibility to the employer, including the authority to issue payments,
collect debts, transfer money, or enter into contracts;
(4) provides an expense
account or corporate debit or credit card;
(5) involves access to
the employer's nonfinancial assets valued at $2,005 or more, including
museum and library collections or prescription medications or other
pharmaceuticals; or
(6) provides access to:
(A) confidential or
proprietary business information; or
(B) information,
including a formula, pattern, compilation, program, device, method,
technique, process, or trade secret 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.
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 require an employee or applicant to
consent to a request for a credit report that contains information about
the employee's or applicant's credit score, credit account balances,
payment history, savings or checking account balances, or savings or
checking account numbers as a condition of employment unless:
(1) the employer is a
financial institution or other employer engaged in or regulating financial
services;
(2) consideration of the
credit report is required by law;
(3) the employer
reasonably believes that the employee or applicant has engaged in specific
activity that constitutes a violation of the law related to the employee's
employment or applicant's prospective employment; or
(4) the report is
substantially related to the employment position or prospective employment
position of an employee or applicant and the employer:
(A) has a bona fide
employment purpose for requesting or using information in the credit
report; and
(B) discloses in writing
to the employee or applicant:
(i) that the employer
intends to consider the employee's or applicant's credit report; and
(ii) the employment
reason for the employer's consideration of the credit report.
No
equivalent provision.
Sec. 52.085.
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 $1,000. 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.
|
SECTION 1. Chapter 52, Labor
Code, is amended by adding Subchapter H to read as follows:
SUBCHAPTER H.
CONSIDERATION OF CREDIT REPORT BY EMPLOYER
Sec. 52.081.
DEFINITIONS. In this subchapter:
(1) "Adverse employment action" means the denial of
employment or a decision regarding the conditions of employment that
adversely affects an employee or applicant.
(2) "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.
(3) "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 credit information or other information on
individuals for the purpose of furnishing credit reports to third parties.
(4) "Credit
report" means any written, oral, or other communication of information
by a consumer reporting agency that bears on an individual's
creditworthiness, credit standing, credit capacity, or debts.
(5) "Employee"
and "employer" have the meanings assigned by Section 21.002.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
Sec. 52.082. ADVERSE
EMPLOYMENT ACTION BY EMPLOYER. An employer may take an adverse employment
action against an employee or applicant that is based wholly or partly on
the employee's or applicant's credit report only if:
(1) the employer provided
to the employee or applicant a copy of the credit report relied on by the
employer together with written instructions regarding how the employee or
applicant, not later than the second business day after the date the
employee or applicant receives the credit report and instructions, may
provide the employer with information explaining or otherwise addressing
the information in the credit report; and
(2) either:
(A) the employee or
applicant has not provided to the employer the information described by
Subdivision (1) within the time prescribed by that subdivision; or
(B) the employee or
applicant provided to the employer the information described by Subdivision
(1) within the time prescribed by that subdivision and the employer
considered that information before taking the action.
No
equivalent provision.
|