Philadelphia Credit Restrictions

July 21st, 2016

On June 7, 2016, Philadelphia Mayor Jim Kenney Signed Bill No 160072 which makes it an unlawful discriminatory practice for an employer to procure or use credit information regarding an applicant or employee for an employment purpose

The law does not apply in the following situations:

  1. Law enforcement positions
  2. Certain positions for the City of Philadelphia
  3. If credit information must be obtained pursuant to state or federal law
  4. If the position requires a person to be bonded by law.
  5. Positions that are supervisory or managerial and involve setting the direction of the business
  6. Positions of significant financial responsibility such as making payments, transfer money, collect debts or enter into contracts – does not include transactions in a retail setting.
  7. Access to customers financial information – does not include information in a retail setting
  8. If the position requires access to confidential or proprietary information

If an employer uses credit information to potentially perform an adverse employment action and exceptions 4-8 apply, the employer must disclose this information to individual in writing and provide the particular information that they relied upon for the decision and give the employer an opportunity to explain the circumstances surrounding the information prior to making a decision.

The new law became effective on July 7, 2016 the full text of the bill can be found here:

https://phila.legistar.com/LegislationDetail.aspx?ID=2559337&GUID=1197A1DA-37B0-448E-AEF1-52E7DF676C6E&Options=ID%7CText%7C&Search=160072

This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.