Equal Employment for All Act of 2025
The Equal Employment for All Act of 2025 would amend the Fair Credit Reporting Act (FCRA) to bar employers from using consumer credit reports to assess an individual’s creditworthiness for hiring, firing, or other employment decisions. The bill creates a broad general prohibition on using credit information in employment, with narrowly defined exceptions. It also preserves existing disclosure and notification requirements to workers and applicants, even when a credit report would be permissible under an exception. In addition to the main prohibition, the bill makes conforming changes to cross-references within the FCRA to reflect the updated rules. Key sponsors include Senator Elizabeth Warren and several cosponsors. If enacted, the measure would shift how many employers evaluate risk and suitability for employment, potentially reducing reliance on credit histories in hiring decisions.
Key Points
- 1General prohibition: Employers may not use a consumer report that bears on a consumer’s creditworthiness for employment purposes or to take adverse action, with limited exceptions.
- 2Consent does not override: The prohibition applies even if the consumer consents to the procurement or use of a credit report for employment purposes.
- 3Narrow exceptions: An employer may use a credit report only if (a) the job requires national security clearance, or (b) otherwise required by law.
- 4Employment disclosures remain: The bill states that the exceptions do not negate other disclosure/notice requirements related to using consumer reports for employment purposes or adverse action.
- 5New and revised FCRA provisions: The act adds a new subsection to the FCRA’s Section 604 and makes conforming amendments to related sections and cross-references to reflect the restricted use of credit reports in employment decisions.