2012 -- S 2587

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LC01832

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO LABOR AND LABOR RELATIONS - FAIR EMPLOYMENT PRACTICES -

CREDIT REPORTS

     Introduced By: Senators Pichardo, DiPalma, Sheehan, Lynch, and Lombardo

     Date Introduced: February 28, 2012

     Referred To: Senate Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-5-7 of the General Laws in Chapter 28-5 entitled "Fair

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Employment Practices" is hereby amended to read as follows:

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     28-5-7. Unlawful employment practices. -- It shall be an unlawful employment

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practice:

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      (1) For any employer:

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      (i) To refuse to hire any applicant for employment because of his or her race or color,

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religion, sex, sexual orientation, gender identity or expression, disability, age, or country of

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ancestral origin;

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      (ii) Because of those reasons, to discharge an employee or discriminate against him or

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her with respect to hire, tenure, compensation, terms, conditions or privileges of employment, or

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any other matter directly or indirectly related to employment. However, if an insurer or employer

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extends insurance related benefits to persons other than or in addition to the named employee,

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nothing in this subdivision shall require those benefits to be offered to unmarried partners of

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named employees;

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      (iii) In the recruiting of individuals for employment or in hiring them, to utilize any

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employment agency, placement service, training school or center, labor organization, or any other

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employee referring source which the employer knows, or has reasonable cause to know,

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discriminates against individuals because of their race or color, religion, sex, sexual orientation,

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gender identity or expression, disability, age, or country of ancestral origin;

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      (iv) To refuse to reasonably accommodate an employee's or prospective employee's

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disability unless the employer can demonstrate that the accommodation would pose a hardship on

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the employer's program, enterprise, or business; or

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      (v) When an employee has presented to the employer an internal complaint alleging

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harassment in the workplace on the basis of race or color, religion, sex, disability, age, sexual

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orientation, gender identity or expression, or country of ancestral origin, to refuse to disclose in a

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timely manner in writing to that employee the disposition of the complaint, including a

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description of any action taken in resolution of the complaint; provided, however, no other

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personnel information shall be disclosed to the complainant.

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      (vi) An employer shall prior to requesting a consumer credit report for employment

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purposes, provide written notice to the person involved. The notice shall inform the person that a

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report will be used, and shall identify the specific basis for use of the report. The notice shall also

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inform the person of the source of the report, and shall contain a box that the person may check

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off to receive a copy of the credit report. If the consumer indicates that he or she wishes to receive

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a copy of the report, the user shall request that a copy be provided to the person when the user

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requests its copy from the credit reporting agency. The report to the user and to the subject person

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shall be provided contemporaneously and at no charge to the subject person. Whenever

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employment involving a consumer is denied either wholly or partly because of information

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contained in a consumer credit report from a consumer credit reporting agency, the user of the

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consumer credit report shall so advise the consumer against whom the adverse action has been

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taken and supply the name and address or addresses of the consumer credit reporting agency

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making the report. No person shall be held liable for any violation of this section if he or she

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shows by a preponderance of the evidence that, at the time of the alleged violation, he or she

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maintained reasonable procedures to assure compliance with this section.

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     (vii) An employer or prospective employer shall not sue a consumer credit report for

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employment purposes unless the position of the person for whom the report is sought is any of the

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following:

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     (A) a managerial position.

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     (B) A position in the state department of justice.

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     (C) That of a sworn peace officer or other law enforcement position.

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     (D) A position for which the information contained in the report is required by law to be

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disclosed or obtained.

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     (E) A position that involves regular access, for any purpose other than the routine

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solicitation and processing of credit card applications in a retail establishment, to all of the

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following types of information of any one person:

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     (I) Bank or credit card account information;

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     (II) Social security number;

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     (III) Date of birth;

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     (F) A position in which the person is, or would be, any of the following:

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     (I) A named signatory on the bank or credit card account of the employer;

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     (II) Authorized to transfer money on behalf of the employer; or

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     (III) Authorized to enter into financial contracts on behalf of the employer.

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     (G) A position that involves access to confidential or proprietary information, including a

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formula, pattern, compilation, program, device, method, technique, process or trade secret that

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derives independent economic value, actual or potential, from not being generally known to, and

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not being readily ascertainable by proper means by other persons who may obtain economic value

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from the disclosure or use of the information, and is the subject of an effort that is reasonable

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under the circumstances to maintain secrecy of the information.

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     (H) A position that involves regular access to cash totaling ten thousand dollars ($10,000)

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or more of the employer, a customer, or client, during the workday.

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     This section does not apply to a person or business subject to sections 6801 to 6809,

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inclusive, of title 15 of the United States code and state and federal statutes or regulations

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implementing those sections if the person or business is subject to compliance oversight by a state

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or federal regulatory agency with respect to those laws.

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      (2) (i) For any employment agency to fail or refuse to properly classify or refer for

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employment or otherwise discriminate against any individual because of his or her race or color,

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religion, sex, sexual orientation, gender identity or expression, disability, age, or country of

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ancestral origin; or

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      (ii) For any employment agency, placement service, training school or center, labor

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organization, or any other employee referring source to comply with an employer's request for the

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referral of job applicants if the request indicates either directly or indirectly that the employer will

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not afford full and equal employment opportunities to individuals regardless of their race or color,

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religion, sex, sexual orientation, gender identity or expression, disability, age, or country of

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ancestral origin;

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      (3) For any labor organization:

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      (i) To deny full and equal membership rights to any applicant for membership because of

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his or her race or color, religion, sex, sexual orientation, gender identity or expression, disability,

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age, or country of ancestral origin;

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      (ii) Because of those reasons, to deny a member full and equal membership rights, expel

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him or her from membership, or otherwise discriminate in any manner against him or her with

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respect to his or her hire, tenure, compensation, terms, conditions or privileges of employment, or

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any other matter directly or indirectly related to membership or employment, whether or not

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authorized or required by the constitution or bylaws of the labor organization or by a collective

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labor agreement or other contract;

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      (iii) To fail or refuse to classify properly or refer for employment, or otherwise to

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discriminate against any member because of his or her race or color, religion, sex, sexual

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orientation, gender identity or expression, disability, age, or country of ancestral origin; or

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      (iv) To refuse to reasonably accommodate a member's or prospective member's disability

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unless the labor organization can demonstrate that the accommodation would pose a hardship on

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the labor organization's program, enterprise, or business;

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      (4) Except where based on a bona fide occupational qualification certified by the

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commission or where necessary to comply with any federal mandated affirmative action

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programs, for any employer or employment agency, labor organization, placement service,

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training school or center, or any other employee referring source, prior to employment or

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admission to membership of any individual, to:

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      (i) Elicit or attempt to elicit any information directly or indirectly pertaining to his or her

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race or color, religion, sex, sexual orientation, gender identity or expression, disability, age, or

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country of ancestral origin;

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      (ii) Make or keep a record of his or her race or color, religion, sex, sexual orientation,

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gender identity or expression, disability, age, or country of ancestral origin;

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      (iii) Use any form of application for employment, or personnel or membership blank

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containing questions or entries directly or indirectly pertaining to race or color, religion, sex,

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sexual orientation, gender identity or expression, disability, age, or country of ancestral origin;

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      (iv) Print or publish or cause to be printed or published any notice or advertisement

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relating to employment or membership indicating any preference, limitation, specification, or

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discrimination based upon race or color, religion, sex, sexual orientation, gender identity or

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expression, disability, age, or country of ancestral origin; or

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      (v) Establish, announce, or follow a policy of denying or limiting, through a quota

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system or otherwise, employment or membership opportunities of any group because of the race

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or color, religion, sex, sexual orientation, gender identity or expression, disability, age, or country

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of ancestral origin of that group;

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      (5) For any employer or employment agency, labor organization, placement service,

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training school or center, or any other employee referring source to discriminate in any manner

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against any individual because he or she has opposed any practice forbidden by this chapter, or

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because he or she has made a charge, testified, or assisted in any manner in any investigation,

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proceeding, or hearing under this chapter;

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      (6) For any person, whether or not an employer, employment agency, labor organization,

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or employee, to aid, abet, incite, compel, or coerce the doing of any act declared by this section to

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be an unlawful employment practice, or to obstruct or prevent any person from complying with

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the provisions of this chapter or any order issued pursuant to this chapter, or to attempt directly or

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indirectly to commit any act declared by this section to be an unlawful employment practice;

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      (7) For any employer to include on any application for employment, except applications

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for law enforcement agency positions or positions related to law enforcement agencies, a question

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inquiring or to otherwise inquire either orally or in writing whether the applicant has ever been

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arrested or charged with any crime; provided, that nothing in this subdivision shall prevent an

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employer from inquiring whether the applicant has ever been convicted of any crime;

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      (8) (i) For any person who, on June 7, 1988, is providing either by direct payment or by

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making contributions to a fringe benefit fund or insurance program, benefits in violation with

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sections 28-5-6, 28-5-7 and 28-5-38, until the expiration of a period of one year from June 7,

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1988 or if there is an applicable collective bargaining agreement in effect on June 7, 1988, until

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the termination of that agreement, in order to come into compliance with sections 28-5-6, 28-5-7

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and 28-5-38, to reduce the benefits or the compensation provided any employee on June 7, 1988,

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either directly or by failing to provide sufficient contributions to a fringe benefit fund or

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insurance program.

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      (ii) Where the costs of these benefits on June 7, 1988 are apportioned between employers

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and employees, the payments or contributions required to comply with sections 28-5-6, 28-5-7

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and 28-5-38 may be made by employers and employees in the same proportion.

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      (iii) Nothing in this section shall prevent the readjustment of benefits or compensation

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for reasons unrelated to compliance with sections 28-5-6, 28-5-7 and 28-5-38.

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     SECTION 2. This act shall take effect upon passage.

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LC01832

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO LABOR AND LABOR RELATIONS - FAIR EMPLOYMENT PRACTICES -

CREDIT REPORTS

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     This act would regulate the use of credit reports by prospective employers for hiring

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purposes.

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     This act would take effect upon passage.

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LC01832

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