2022 -- H 7509

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LC003198

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY

EMPLOYMENT PROTECTION ACT -- DECEPTIVE TRADE PRACTICES

     

     Introduced By: Representatives Morales, Williams, Bennett, Vella-Wilkinson, Felix,
Alzate, Caldwell, Craven, Batista, and Ranglin-Vassell

     Date Introduced: February 16, 2022

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR RELATIONS"

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is hereby amended by adding thereto the following chapter:

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CHAPTER 6.15

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CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT

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     28-6.15-1. Prohibition of the use of credit history in hiring process.

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     Employers are prohibited from asking questions about a job applicant's financial past

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during job interviews or pose questions about the applicant's credit history on its job application.

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Employers shall not seek or use credit checks while making a hiring decision.

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     28-6.15-2. Exceptions.

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     (a) The prohibitions contained in § 28-6.15-1 shall not apply to employment which:

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     (1) Requires a credit check pursuant to the provisions of federal or state law;

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     (2) Requires a national security clearance;

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     (3) Has signatory authority over third-party funds or assets worth ten thousand dollars

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($10,000) or more;

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     (4) Are non-clerical positions with regular access to trade secrets, intelligence information

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or national security information; or

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     (5) Are positions with regular duties allowing the employee to modify digital security

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systems, which are established to prevent the unauthorized use of the employer's or client's

 

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networks or databases.

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     (b) If the available position falls within one of the exceptions listed in subsection (a) of this

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section, prior to conducting a credit check on the applicant, an employer shall:

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     (1) Provide notice to the job applicant that the employer shall seek their credit report; and

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     (2) Obtain written authorization/consent from that job applicant authorizing the credit

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check.

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     28-6.15-3. Administrative investigations and penalties.

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     (a) Whenever a job applicant alleges a violation of this chapter, the applicant may file a

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complaint with the department of labor and training and describe in detail the nature and basis of

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their claim, along with providing any supporting written documentation.

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     (b) Pursuant to an adjudicatory proceeding, the department shall investigate the alleged

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violations, and may impose an administrative penalty of up to ten thousand dollars ($10,000) for

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each violation. During its penalty determination phase, the department shall be guided by the

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following factors:

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     (1) The severity of the violation;

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     (2) The existence of prior violations;

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     (3) The employer's size, considering both the total number of employees and its revenue;

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and

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     (4) The employer's actual or constructive knowledge of this chapter.

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     (c) The assessed penalty shall be equally divided between the department and the

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complainant.

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     28-6.15-4. Civil action.

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     (a) Any employee or former employee, or any organization representing such an employee

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or former employee aggrieved by a violation of this chapter may, within three (3) years after the

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occurrence of the alleged violation, file a civil action in any court of competent jurisdiction to

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obtain relief. An aggrieved party shall be entitled to recover up to ten thousand dollars ($10,000),

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in liquid damages, as well as reasonable attorneys' fees and court costs.

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     (b) In assessing what damages to award, a court shall consider the factors enumerated in §

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28-6.15-3(b).

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     (c) A civil action filed under this section may be instituted instead of, but not in addition

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to, the director of labor and training enforcement procedures authorized by § 28-6.15-3.

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     SECTION 2. Section 6-13.1-21 of the General Laws in Chapter 6-13.1 entitled "Deceptive

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Trade Practices" is hereby amended to read as follows:

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     6-13.1-21. Credit reports -- Notice to individual -- Requirements of users of credit

 

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reports.

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     (a) No person or business shall request a credit report in connection with a consumer's

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application for credit, employment, or insurance unless a consumer is first informed that a credit

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report may be requested in connection with the application.

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     (b) Whenever credit or insurance for personal, family, or household purposes, or

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employment involving a consumer is denied or the charge for that credit or insurance is increased

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either wholly or partly because of information contained in a credit report from a credit bureau, the

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user of the credit report shall advise the consumer against whom the adverse action has been taken

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and supply the name and address of the credit bureau making the report.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY

EMPLOYMENT PROTECTION ACT -- DECEPTIVE TRADE PRACTICES

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     This act would prohibit employers from seeking or using credit reports in making hiring

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decisions concerning prospective employees, asking questions about the applicant's financial past

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during its interviews, or including credit history questions within their job applications. It would

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authorize the department of labor and training to impose administrative fines against the offending

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employer. Finally, it would also allow the aggrieved employee to seek civil financial damages and

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attorneys' fees.

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     This act would take effect upon passage.

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