Philadelphia Amends Credit Check Ordinance

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Philadelphia recently amended its credit check law, the Unlawful Credit Screening Practices in Employment, through two items of legislation: Bill No 200413 and Bill No 200614. The amendments will go into effect on March 21, 2021.

Credit Check Exemptions

Bill No 200413 removes the exemption line item of “any law enforcement agency or financial institution”. Thus, once the amendment takes effect, law enforcement agencies and financial institutions will need to evaluate if one of the remaining exemptions applies if using credit check information in an employment decision.

Adverse Action Requirements

Under the current version of the credit check law, if an impacted employer chooses to consider adverse action with respect to an individual’s credit information (in whole or in part), they must disclose that fact to the individual in writing and identify the information upon which they relied.
Bill No 200614 alters this language allowing employers to comply with this requirement by following the Fair Credit Reporting Act’s adverse action process. Specifically, employers must provide an individual, before taking an adverse employment action, “with a written copy of the information relied, the right to obtain and dispute such information, and such other information as may be required by law.”

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