Washington, D.C. Act Prohibiting Use of Credit History in Employment Decisions Now Effective

Following the expiration of the congressional review period, the D.C. Fair Credit in Employment Amendment Act of 2016 (Bill 21-0244) (Act) is now in effect. As we previously reported, the Act amends the District’s Human Rights Act by prohibiting employers from making employment decisions based on the credit histories of current or prospective employees. For more details on the Act view our briefing, Washington, D.C. Set to Prohibit Use of Credit History in Employment Decisions. D.C. joins several states, including California, Illinois, and Maryland, in addition to other municipalities, including Chicago and New York City, that have enacted similar laws that limit private employers’ use of credit checks during the hiring process. D.C. employers that utilize credit checks as part of their hiring or employment practices should consult with counsel to ensure that policies and procedures comply with the Act.