Employee Credit Privacy Act

Issues that might arise under the subject of labor law and specifically unemployment defense are often complex and unpredictable. Current economic situation negatively affected not only employees, but also employers. Many business owners struggle within their regular course of business. Instead of helping small and medium size corporations and encouraging people to open new business entities, the government placed multiple burdens on business owners. For example, unemployment benefits insurance was extended and its premium was increased. Moreover, the state of Illinois made a step further and amended its Wage payment and Collection Act, by adding fines and even making it possible to hold employers criminally liable. This page discusses briefly some core concepts of claims for unemployment, employee credit privacy and wage claims and how to defend from such claims. For more information you need to consult with an experienced attorney, who practices in this field. Call us today for a free consultation.847.241.1299.

Did you know that employers can no longer use employee's credit history as a basis for employment, discharge or compensation? In August of 2010 Illinois Governor Pat Quinn into law the Employee Credit Privacy Act. For a full version of the Act click here. Only under very limited circumstances can employers run a credit check on prospective employees. The Act also establishes penalties for the employers who were caught running credit history checks. The law excludes banks and some other financial institutions.

The law also allows employers to use credit information where such information is related to a bona fide occupation qualification for a particular group of employees. This exception applies to positions involving money-handling or other confidential job duties, such as those positions where: (1) state or federal law requires bonding of an individual holding the position; (2) job duties include access to $1,000 in cash or assets; (3) job duties include signatory power of business assets of $100 or more per transaction; (4) employees are in a managerial position that involves setting direction or control of the business; or (5) employees who have access to confidential information, financial information or trade secrets.


For more information contact our office at 847.241.1299


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