Citations Affected: IC 22-5-7.
Synopsis: Use of credit reports for employment purposes. Prohibits an
employer from using a credit report in the process of hiring a
prospective employee or in determining whether to continue the
employment of an employee. Provides that an employee or prospective
employee may bring a civil action against an employer for violating the
prohibition. Provides for an award of actual damages, court costs, and
attorney's fees to a prevailing individual, along with an injunction
against the employer's further use of credit reports in violation of the
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Civil Law.
A BILL FOR AN ACT to amend the Indiana Code concerning labor
set forth in IC 24-2-3-2.
Sec. 4. (a) Except as provided in subsections (b) and (c), an employer shall not use a credit report in:
(1) the process of hiring a prospective employee; or
(2) determining whether to continue the employment of an employee.
(b) An employer may use a credit report for employment purposes if:
(1) the information contained in the credit report is substantially job related in that the employment position or prospective employment position of the individual for whom the credit report is sought has access to:
(B) other assets; or
(C) trade secrets or other confidential information; or
(2) the employment position of the individual for whom the report is sought is a:
(A) managerial position;
(B) position in the office of the attorney general created by IC 4-6-1-2;
(C) sworn law enforcement position; or
(D) position for which the information contained in the report is required to be:
(i) disclosed by law; or
(ii) obtained by the employer.
(c) This section does not apply to a person or business subject to:
(1) Sections 6801 through 6809 of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); or
(2) state or federal statutes or regulations implementing the Sections referred to in subdivision (1);
if the person or business is subject to compliance oversight by a state or federal regulatory agency with respect to the Sections referenced in subdivision (1).
Sec. 5. (a) An employee or prospective employee may bring a civil action against an employer to enforce section 4 of this chapter.
(b) In an action brought under subsection (a) in which an employer is found to have violated section 4 of this chapter, the court may do the following:
(A) actual damages; and
(B) court costs and reasonable attorney's fees;