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Philadelphia’s restriction on the use of credit information in employment decisions may require revisions to background check disclosure/authorization form

Philadelphia recently passed Bill No. 160072 into law, which amends the city’s Fair Practices Ordinance to prohibit employers in the City of Philadelphia from procuring or using applicants’ or employees’ credit information for employment purposes.

Included in the law is language making it an unlawful discriminatory practice for an employer to seek an applicant or employee’s cooperation or consent to the procurement of credit information for employment purposes (with some exceptions). 

In light of this new restriction, employers would be well advised to review the background check disclosure and authorization forms they are using in the City of Philadelphia and, when applicable, remove any language requesting an applicant or employee’s authorization or consent to the procurement of credit information for employment purposes. 

The law went into effect on July 7, 2016. 

For more information on the new Ordinance, please see our previous News to Note.

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