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House File 732 - IntroducedA Bill ForAn Act 1prohibiting employers from reviewing credit information
2about employees.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 84A.5, subsection 4, Code 2021, is
2amended to read as follows:
34. The division of labor services is responsible for the
4administration of the laws of this state under chapters 88,
588A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92,
6and 94A, and sections 73A.21 and 85.68. The executive head of
7the division is the labor commissioner, appointed pursuant to
8section 91.2.
9 Sec. 2. Section 91.4, subsection 2, Code 2021, is amended
10to read as follows:
112. The director of the department of workforce development,
12in consultation with the labor commissioner, shall, at the
13time provided by law, make an annual report to the governor
14setting forth in appropriate form the business and expense of
15the division of labor services for the preceding year, the
16number of remedial actions taken under chapter 89A, the number
17of disputes or violations processed by the division and the
18disposition of the disputes or violations, and other matters
19pertaining to the division which are of public interest,
20together with recommendations for change or amendment of the
21laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B,
2290A, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and section 85.68,
23and the recommendations, if any, shall be transmitted by the
24governor to the first general assembly in session after the
25report is filed.
26 Sec. 3. NEW SECTION. 91F.1 Definitions.
271. “Commissioner” means the labor commissioner, appointed
28pursuant to section 91.2, or the labor commissioner’s designee.
292. “Consumer reporting agency” means any person that for
30monetary fees, dues, or on a cooperative nonprofit basis
31regularly engages in whole or in part in the practice of
32assembling or evaluating consumer credit information or other
33information on consumers for the purpose of furnishing consumer
34reports to third parties.
353. “Credit report” means any written, oral, or other
-1-1communication of information by a consumer reporting agency
2that relates to a consumer’s creditworthiness, credit standing,
3or credit capacity.
44. “Credit score” means a number or rating that is derived
5from an algorithm, computer application, model, or other
6process that is based in whole or in part on information from a
7person’s credit report.
85. “Employee” means a natural person who is employed in this
9state for wages by an employer.
106. “Employer” means a person, as defined in chapter 4, who
11in this state employs for wages a natural person.
12 Sec. 4. NEW SECTION. 91F.2 Employer review of employee
13credit information prohibited.
14Unless specifically required by state or federal law, an
15employer shall not do any of the following:
161. View an employee or prospective employee’s credit report
17or credit score or a summary of an employee or prospective
18employee’s credit report or credit score.
192. Require or ask an employee or prospective employee
20to provide the employer with the employee’s or prospective
21employee’s credit report or credit score or to provide a
22summary of the employee’s or prospective employee’s credit
23report or credit score.
24 Sec. 5. NEW SECTION. 91F.3 Powers and duties of the
25commissioner.
261. The commissioner may hold hearings and investigate
27alleged violations of this chapter by an employer.
282. The commissioner may assess and recover civil penalties
29in accordance with sections 91F.4 and 91F.5.
303. The commissioner shall adopt rules pursuant to chapter
3117A to administer this chapter.
32 Sec. 6. NEW SECTION. 91F.4 Civil penalties — amount.
33An employer who violates the provisions of this chapter
34shall be subject to a penalty as follows:
351. For a first violation, the commissioner shall issue a
-2-1written warning to the employer that includes notice regarding
2penalties for subsequent violations.
32. For a second violation, the commissioner may impose a
4civil penalty of up to five hundred dollars.
53. For a third violation, the commissioner may impose a
6civil penalty of up to one thousand five hundred dollars.
74. For subsequent violations, the commissioner may impose a
8civil penalty of up to one thousand five hundred dollars.
9 Sec. 7. NEW SECTION. 91F.5 Civil penalties — recovery.
101. The commissioner may propose that an employer be assessed
11a civil penalty as provided in section 91F.4 by serving the
12employer with notice of such proposal in the same manner as an
13original notice is served under the rules of civil procedure.
14Upon service of such notice, the proposed assessment shall be
15treated as a contested case under chapter 17A. However, an
16employer must request a hearing within thirty days of being
17served.
182. If an employer does not request a hearing pursuant
19to subsection 1 or if the commissioner determines, after an
20appropriate hearing, that an employer is in violation of this
21chapter, the commissioner shall assess a civil penalty in
22accordance with section 91F.4.
233. An employer may seek judicial review of any assessment
24made under subsection 2 by instituting proceedings for judicial
25review pursuant to chapter 17A. However, such proceedings must
26be instituted in the district court of the county in which the
27violation or one of the violations occurred and within thirty
28days of the day on which the employer was notified that an
29assessment has been made.
304. After the time for seeking judicial review has expired
31or after all judicial review has been exhausted and the
32commissioner’s assessment has been upheld, the commissioner
33shall request the attorney general to recover the assessed
34penalties in a civil action.
355. Civil penalties recovered pursuant to this section shall
-3-1be remitted by the commissioner to the treasurer of state for
2deposit in the general fund of the state.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill prohibits an employer from viewing an employee’s
7or prospective employee’s credit report or credit score or
8a summary of an employee’s or prospective employee’s credit
9report or credit score. The bill also prohibits an employer
10from requiring or asking an employee or prospective employee
11to provide the employer with the employee’s or prospective
12employee’s credit report or credit score or to provide a
13summary of the employee’s or prospective employee’s credit
14report or credit score. These prohibitions do not apply if
15such actions are specifically required by state or federal law.
16An employer that violates the provisions of the bill is
17subject to civil penalties ranging from a written warning for
18a first violation to up to $1,500 for a fourth or subsequent
19violation.
20The labor commissioner may hold hearings and investigate
21alleged violations of the bill by an employer, may assess and
22recover civil penalties and seek attorney general assistance
23in such recovery according to the procedural provisions of the
24bill, and shall adopt rules to administer the bill.
-4-je/rn
2about employees.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 84A.5, subsection 4, Code 2021, is
2amended to read as follows:
34. The division of labor services is responsible for the
4administration of the laws of this state under chapters 88,
588A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92,
6and 94A, and sections 73A.21 and 85.68. The executive head of
7the division is the labor commissioner, appointed pursuant to
8section 91.2.
9 Sec. 2. Section 91.4, subsection 2, Code 2021, is amended
10to read as follows:
112. The director of the department of workforce development,
12in consultation with the labor commissioner, shall, at the
13time provided by law, make an annual report to the governor
14setting forth in appropriate form the business and expense of
15the division of labor services for the preceding year, the
16number of remedial actions taken under chapter 89A, the number
17of disputes or violations processed by the division and the
18disposition of the disputes or violations, and other matters
19pertaining to the division which are of public interest,
20together with recommendations for change or amendment of the
21laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B,
2290A, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and section 85.68,
23and the recommendations, if any, shall be transmitted by the
24governor to the first general assembly in session after the
25report is filed.
26 Sec. 3. NEW SECTION. 91F.1 Definitions.
271. “Commissioner” means the labor commissioner, appointed
28pursuant to section 91.2, or the labor commissioner’s designee.
292. “Consumer reporting agency” means any person that for
30monetary fees, dues, or on a cooperative nonprofit basis
31regularly engages in whole or in part in the practice of
32assembling or evaluating consumer credit information or other
33information on consumers for the purpose of furnishing consumer
34reports to third parties.
353. “Credit report” means any written, oral, or other
-1-1communication of information by a consumer reporting agency
2that relates to a consumer’s creditworthiness, credit standing,
3or credit capacity.
44. “Credit score” means a number or rating that is derived
5from an algorithm, computer application, model, or other
6process that is based in whole or in part on information from a
7person’s credit report.
85. “Employee” means a natural person who is employed in this
9state for wages by an employer.
106. “Employer” means a person, as defined in chapter 4, who
11in this state employs for wages a natural person.
12 Sec. 4. NEW SECTION. 91F.2 Employer review of employee
13credit information prohibited.
14Unless specifically required by state or federal law, an
15employer shall not do any of the following:
161. View an employee or prospective employee’s credit report
17or credit score or a summary of an employee or prospective
18employee’s credit report or credit score.
192. Require or ask an employee or prospective employee
20to provide the employer with the employee’s or prospective
21employee’s credit report or credit score or to provide a
22summary of the employee’s or prospective employee’s credit
23report or credit score.
24 Sec. 5. NEW SECTION. 91F.3 Powers and duties of the
25commissioner.
261. The commissioner may hold hearings and investigate
27alleged violations of this chapter by an employer.
282. The commissioner may assess and recover civil penalties
29in accordance with sections 91F.4 and 91F.5.
303. The commissioner shall adopt rules pursuant to chapter
3117A to administer this chapter.
32 Sec. 6. NEW SECTION. 91F.4 Civil penalties — amount.
33An employer who violates the provisions of this chapter
34shall be subject to a penalty as follows:
351. For a first violation, the commissioner shall issue a
-2-1written warning to the employer that includes notice regarding
2penalties for subsequent violations.
32. For a second violation, the commissioner may impose a
4civil penalty of up to five hundred dollars.
53. For a third violation, the commissioner may impose a
6civil penalty of up to one thousand five hundred dollars.
74. For subsequent violations, the commissioner may impose a
8civil penalty of up to one thousand five hundred dollars.
9 Sec. 7. NEW SECTION. 91F.5 Civil penalties — recovery.
101. The commissioner may propose that an employer be assessed
11a civil penalty as provided in section 91F.4 by serving the
12employer with notice of such proposal in the same manner as an
13original notice is served under the rules of civil procedure.
14Upon service of such notice, the proposed assessment shall be
15treated as a contested case under chapter 17A. However, an
16employer must request a hearing within thirty days of being
17served.
182. If an employer does not request a hearing pursuant
19to subsection 1 or if the commissioner determines, after an
20appropriate hearing, that an employer is in violation of this
21chapter, the commissioner shall assess a civil penalty in
22accordance with section 91F.4.
233. An employer may seek judicial review of any assessment
24made under subsection 2 by instituting proceedings for judicial
25review pursuant to chapter 17A. However, such proceedings must
26be instituted in the district court of the county in which the
27violation or one of the violations occurred and within thirty
28days of the day on which the employer was notified that an
29assessment has been made.
304. After the time for seeking judicial review has expired
31or after all judicial review has been exhausted and the
32commissioner’s assessment has been upheld, the commissioner
33shall request the attorney general to recover the assessed
34penalties in a civil action.
355. Civil penalties recovered pursuant to this section shall
-3-1be remitted by the commissioner to the treasurer of state for
2deposit in the general fund of the state.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill prohibits an employer from viewing an employee’s
7or prospective employee’s credit report or credit score or
8a summary of an employee’s or prospective employee’s credit
9report or credit score. The bill also prohibits an employer
10from requiring or asking an employee or prospective employee
11to provide the employer with the employee’s or prospective
12employee’s credit report or credit score or to provide a
13summary of the employee’s or prospective employee’s credit
14report or credit score. These prohibitions do not apply if
15such actions are specifically required by state or federal law.
16An employer that violates the provisions of the bill is
17subject to civil penalties ranging from a written warning for
18a first violation to up to $1,500 for a fourth or subsequent
19violation.
20The labor commissioner may hold hearings and investigate
21alleged violations of the bill by an employer, may assess and
22recover civil penalties and seek attorney general assistance
23in such recovery according to the procedural provisions of the
24bill, and shall adopt rules to administer the bill.
-4-je/rn