Abuse Prevention Systems offers Employment Credit Reports through Equifax, incurring a $15.00 fee. The Credit Report may be added to any Background Check Level, or ordered as a standalone Background Check.
Abuse Prevention Systems does not provide credit scores as an element of an Employment Credit Report. Credit scores are only permissible for tenant screening purposes.
An organization must undergo an onsite inspection before ordering Credit Reports. The onsite inspection incurs a one-time pass-through fee of $65.50. A virtual onsite inspection option is also available, which requires the organization to upload all required photos and documentation.
Primary Conditions For Ordering Credit Reports:
- Exterior and interior signage must be clearly visible.
- Space and furnishings must be suitable for the type of business. For example, a preschool should have classrooms, school supplies, etc.
- All marketing materials must include the name of the organization, such as letterhead, business cards, bulletins, etc.
- The organization must have a shredding machine or an agreement with a shredding service.
- The organization must have locking doors; an alarm system is preferred.
- The organization should have filing cabinets with locks or must affirm that files will be securely stored electronically.
Permissible Purpose For Running Credit Reports
Organizations are generally allowed to run Credit Reports solely for employment positions. Many states have regulations that limit employers' ability to conduct Credit Reports on applicants. Abuse Prevention Systems will not approve Credit Applications for organizations in the following jurisdictions:
District Of Columba - See DC Code of the District of Columbia § 2–1402.11.
Massachusetts - See MA Bill H.1434.
Below is an overview of state or city-specific jurisdictions that have additional requirements for organizations that run Credit Reports. These are frequently updated, but legal requirements change quickly in some jurisdictions, and Abuse Prevention Systems cannot guarantee all information is current and accurate. The synopsis of content is ours: please read the actual statute, ordinance or provision to form your own conclusions.
Always consult your attorney for legal advice.
California Permissible Positions For Running Credit Reports:
- A managerial position.
- A position for which the information contained in the report is required by law to be disclosed or obtained.
- A position in which the person is, or would be, any of the following:
- A named signatory on the bank or credit card account of the employer;
- Authorized to transfer money on behalf of the employer; or
- Authorized to enter into financial contracts on behalf of the employer.
- A position that involves access to confidential or proprietary information, including a formula, pattern, compilation, program, device, method, technique, process or trade secret that (i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who may obtain economic value from the disclosure or use of the information, and (ii) is the subject of an effort that is reasonable under the circumstances to maintain secrecy of the information.
- A position that involves regular access to cash totaling ten thousand dollars ($10,000) or more of the employer, a customer, or client, during the workday.
See CA Labor Code § 1024.5.
Colorado Permissible Positions For Running Credit Reports:
- The Credit Report is required by law; or
- The Credit Report is substantially related to the employee's current or potential job and the employer has a bona fide purpose for requesting or using information in the Credit Report that is substantially related to the employee's current or potential job and is disclosed in writing to the employee.
‘Substantially related to the employee's current or potential job’ means the information contained in a Credit Report is related to the position for which the employee who is the subject of the report is being evaluated because the position:
- Constitutes executive or management personnel or officers or employees who constitute professional staff to executive and management personnel, and the position involves one or more of the following:
- Setting the direction or control of a business, division, unit, or an agency of a business;
- A fiduciary responsibility to the employer;
- Access to customers', employees', or the employer's personal or financial information other than information customarily provided in a retail transaction; or
- The authority to issue payments, collect debts, or enter into contracts.
See CO Revised Statutes § 8-2-126.
Connecticut Permissible Positions For Running Credit Reports:
- The Credit Report is required by law;
- The employer reasonably believes that the employee has engaged in specific activity that constitutes a violation of the law related to the employee's employment; or
- Such Credit Report is substantially related to the employee's current or potential job, or the employer has a bona fide purpose for requesting or using information in the Credit Report that is substantially job-related and is disclosed in writing to the employee or applicant.
‘Substantially related to the employee's current or potential job’ means the information contained in the Credit Report is related to the position for which the employee or prospective employee who is the subject of the report is being evaluated because the position:
- Is a managerial position which involves setting the direction or control of a business, division, unit or an agency of a business;
- Involves a fiduciary responsibility to the employer, including, but not limited to, the authority to issue payments, collect debts, transfer money or enter into contracts;
- Provides an expense account or corporate debit or credit card;
- Provides access to (i) confidential or proprietary business information, or (ii) information, including a formula, pattern, compilation, program, device, method, technique, process or trade secret that: (I) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from the disclosure or use of the information; and (II) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; or
- Involves access to the employer's nonfinancial assets valued at two thousand five dollars or more, including, but not limited to, museum and library collections and to prescription drugs and other pharmaceuticals.
See CT General Statutes § 31-51tt.
Hawaii Permissible Positions For Running Credit Reports:
- Employers who are expressly permitted or required to inquire into an individual's credit history for employment purposes pursuant to any federal or state law; or
- Managerial or supervisory employees.
See HI Revised Statutes § 378-2.7.
Illinois Permissible Positions For Running Credit Reports:
- State or federal law requires bonding or other security covering an individual holding the position;
- The duties of the position include custody of or unsupervised access to cash or marketable assets valued at $2,500 or more;
- The duties of the position include signatory power over business assets of $100 or more per transaction;
- The position is a managerial position which involves setting the direction or control of the business;
- The position involves access to personal or confidential information, financial information, or trade secrets;
- The position meets criteria in administrative rules, if any, that the U.S. Department of Labor or the Illinois Department of Labor has promulgated to establish the circumstances in which a credit history is a bona fide occupational requirement; or
- The employee's or applicant's credit history is otherwise required by or exempt under federal or State law.
See IL Compiled Statutes § 820 70/10.
Maryland Permissible Positions For Running Credit Reports:
- The employer has a bona fide purpose for requesting or using information in the Credit Report or credit history that is:
- Substantially job–related; and
- Disclosed in writing to the employee or applicant.
- For the purposes of this subsection, a position for which an employer has a bona fide purpose that is substantially job–related for requesting or using information in a Credit Report or credit history includes a position that:
- Is managerial and involves setting the direction or control of a business, or a department, division, unit, or agency of a business;
- Involves a fiduciary responsibility to the employer, including the authority to issue payments, collect debts, transfer money, or enter into contracts;
- Is provided an expense account or a corporate debit or credit card; or
- Has access to:
- Information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
- Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from the disclosure or use of the information; and
- Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; or
- Other confidential business information.
See MD Labor and Employment Code § 3–711.
Nevada Permissible Positions For Running Credit Reports:
- The employer is required or authorized, pursuant to state or federal law, to use a consumer Credit Report or other credit information for that purpose;
- The employer reasonably believes that the employee or prospective employee has engaged in specific activity which may constitute a violation of state or federal law; or
- The information contained in the consumer Credit Report or other credit information is reasonably related to the position for which the employee or prospective employee is being evaluated for employment, promotion, reassignment or retention as an employee. The information in the consumer Credit Report or other credit information shall be deemed reasonably related to such an evaluation if the duties of the position involve:
- The care, custody and handling of, or responsibility for, money, financial accounts, corporate credit or debit cards, or other assets;
- Access to trade secrets or other proprietary or confidential information;
- Managerial or supervisory responsibility;
- The care, custody and handling of, or responsibility for, the personal information of another person; or
- Access to the personal financial information of another person.
See NV Revised Statutes § 580.
New York City Permissible Positions For Running Credit Reports:
- Positions requiring bonding under federal, state, or city law or regulation. In order for this exemption to apply, the specific position must be required to be bonded under city, state, or federal law, and bonding must be legally required, not simply permitted, by statute;
- Non-clerical positions having regular access to trade secrets or intelligence information;
- Positions involving responsibility for funds or assets worth $10,000 or more; or
- Positions involving digital security systems.
See N.Y.C. Local Law § 37.
Oregon Permissible Positions For Running Credit Reports:
- Employers that are required by state or federal law to use individual credit history for employment purposes; or
- The obtainment or use by an employer of information in the credit history of an applicant or employee because the information is substantially job-related and the employer’s reasons for the use of such information are disclosed to the employee or prospective employee in writing.
See OR Revised Statutes § 659A.320.
Philadelphia, Pennsylvania Permissible Positions For Running Credit Reports:
- Such information must be obtained pursuant to state or federal laws;
- The job requires an employee to be bonded under city, state, or federal law;
- The job is supervisory or managerial in nature and involves setting the direction or policies of a business or a division, unit or similar part of a business;
- The job involves significant financial responsibility to the employer, including the authority to make payments, transfer money, collect debts, or enter into contracts, but not including handling transactions in a retail setting; or
- The job requires access to confidential or proprietary information that derives substantial value from secrecy.
See Pennsylvania Philadelphia Fair Practices Act § 9-1130.
Vermont Permissible Positions For Running Credit Reports:
- The information is required by state or federal law or regulation;
- The position of employment involves access to confidential financial information;
- The position of employment requires a financial fiduciary responsibility to the employer or a client of the employer, including the authority to issue payments, collect debts, transfer money, or enter into contracts;
- The employer can demonstrate that the information is a valid and reliable predictor of employee performance in the specific position of employment; or
- The position of employment involves access to an employer’s payroll information.
See Vermont General Assembly Act 154.
Washington Permissible Positions For Running Credit Reports:
- Substantially job related and the employer's reasons for the use of such information are disclosed to the consumer in writing; or
- Required by law.
See Washington Revised Code § 19.182.020.
Please contact us at BackgroundChecks@AbusePreventionSystems.com to begin the Credit Check onboarding process.
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