Illinois Credit Privacy Act

While the use of pre-employment credit checks has increased over the past few years, on August 10, 2010, Illinois Governor Pat Quinn signed into law the Illinois Credit Privacy Act (“ICPA”).  The ICPA significantly limits Illinois employers’ ability to obtain any credit history information for employment applicants, as well as for current employees.  The ICPA applies to virtually all Illinois employers, only excluding banks and financial institutions, insurance companies, state law enforcement units, state and local government agencies and debt collection agencies.

Under the law, covered employers are prohibited from inquiring about an applicant or employee’s credit history or obtaining a copy of their credit report.  Employers may, however, still inquire about an employee or applicant’s credit history for a position in which a credit history is a “bona fide occupational qualification.”  These limited circumstances include positions that involve: (1) bonding or security per state or federal law; (2) unsupervised access to $2,500 in cash or equitable assets; (3) signatory power over business assets of more than $100; (4) management and control of the business; or (5) access to personal, financial or confidential information, trade secrets, or state or natural security information.  A credit history is also permitted where the employee or applicant’s credit history is otherwise required by, or allowed under, state or federal law.

The ICPA prohibits retaliation against any person who files a complaint, participates in an investigation or proceeding, or opposes a violation of the ICPA.  The Act also prohibits employers from requiring applicants or employees to waive any rights that they have under the ICPA.  Any employer that violates the law can be subject to civil liability for damages (including attorneys’ fees and costs), as well as injunctive relief.

The ICPA becomes effective on January 1, 2011.  Therefore, all employers who routinely obtain credit history reports as part of their hiring process need to examine whether or not they are covered under the Act and, if so, they may need to cease obtaining those reports except in circumstances where it is a bona fide job qualification.  For further information on this new law, please contact your employment labor attorney at Arnstein & Lehr LLP.

EFCA Could Be Law Within 5 Months: Union Leader

Law360, New York (March 03, 2009) — AFL-CIO Executive Council member and union leader James Williams said Tuesday that he expected the controversial Employee Free Choice Act to pass in the next four or five months.

Williams, general president of the International Union of Painters and Allied Trades, is one of more than 40 members who comprise the AFL-CIO’s Executive Council….To Read More about EFCA click here.

US Immigration Logo

For the second time in a little over a year, the U.S. Citizenship and Immigration Services (“USCIS”) issued a revised Form I-9 to be used by employers to verify an employee’s authorization to work in the United States.  Effective February 2, 2009, employers will have to complete the updated Form I-9 for all new hires and for re-verification of certain employees with temporary work authorization.  Among other minor technical changes, the new Form I-9 again changes the types of documents that employers may accept to prove an employee’s authorization to work:

• Temporary Resident Card (Form I-688) and Employment Authorization Cards (Forms I-688A and 1-688B) are no longer valid to establish both identity and employment authorization.
• Acceptable List A documents now include foreign passports containing certain machine-readable immigrant visas, as well as passports from the Federated States of Micronesia and the Republic of the Marshall Islands (but only if presented with an I-94 or an I-94A) and the new U.S. Passport Card.
• All documents presented during the verification process must now be unexpired.  Previously, certain expired documents, such as U.S. passports, were acceptable.

The new Form I-9, as well as the list of what documents are acceptable, will be available commencing on February 2, 2009 on the USCIS website at: www.uscis.gov/i-9.  Employers are strongly encouraged to begin using the revised Form I-9 as of February 2nd since non-compliant employers may be fined or penalized for not using the new Form I-9.

The new Form I-9 does not need to be completed for existing employees.  It must only be used for new hires and for re-verification of employees upon the expiration of their current authorization.  If you have any questions about this article or the revised Form I-9 requirements, please contact E. Jason Tremblay at Arnstein & Lehr LLP or your usual Arnstein & Lehr LLP attorney.