H.R. 5354: Equal Employment for All Act of 2025

This legislation, titled the Equal Employment for All Act of 2025, seeks to amend the Fair Credit Reporting Act concerning employment practices related to consumer credit checks. Here’s a summary of its main provisions:

Prohibition of Credit Checks for Employment

The bill specifically prohibits employers from using consumer reports or investigative consumer reports that contain information about an individual's creditworthiness, credit standing, or credit capacity for employment purposes. This means that:

• Employers cannot consider credit information when making hiring decisions or any adverse employment actions against current employees.
• The prohibition applies to both prospective hires and current employees.

Exceptions to the Rule

There are specific circumstances under which employers are allowed to use credit information:

• If the individual is applying for a job that requires national security clearance.
• If the use of such information is mandated by existing laws.

Consent and Authorization

The bill stipulates that employers cannot use credit reports for employment decisions even if the consumer has consented to the procurement of the report. This means that consent from the individual does not override the prohibition set forth in the bill.

Disclosure Requirements Maintained

Even where exceptions apply, the bill maintains the necessity for employers to comply with other existing requirements for disclosing and notifying consumers about the use of their credit reports in employment decisions.

Amendments and Revisions

The revisions to the Fair Credit Reporting Act include conforming amendments that reflect the updates in terminology and structure brought about by this legislation. The bill designates sections that will be amended to ensure consistency and clarity in the application of these rules.

Relevant Companies

None found.