SENATE BILL No. 158
DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-5-6.
Synopsis: Restriction of employer use of consumer reports. Prohibits
an employer from using a consumer report for employment purposes
unless certain conditions apply. Allows a consumer to bring a civil
action against an employer for a violation of this provision. Makes it a
Class B infraction for a knowing or intentional violation of this
Effective: July 1, 2010.
January 11, 2010, read first time and referred to Committee on Corrections, Criminal, and
Second Regular Session 116th General Assembly (2010)
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SENATE BILL No. 158
A BILL FOR AN ACT to amend the Indiana Code concerning labor
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 22-5-6; (10)IN0158.1.1. -->
SECTION 1. IC 22-5-6 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 6. Use of Consumer Reports by Employers
Sec. 1. As used in this chapter, "consumer" means an individual.
Sec. 2. As used in this chapter, "consumer report" means any
written, oral, or other communication of any information that:
(1) is made by a consumer reporting agency (as defined in
(2) bears on a consumer's creditworthiness, credit standing,
credit capacity, character, general reputation, personal
characteristics, or mode of living; and
(3) is used or expected to be used or collected in whole or in
part for the purpose of serving as a factor in establishing a
consumer's eligibility for employment purposes.
Sec. 3. As used in this chapter, "employer" has the meaning set
forth in IC 22-8-1.1-1.
Sec. 4. As used in this chapter, "employment purposes" means
a consumer report used for the purpose of evaluating a consumer
for employment, promotion, reassignment, or retention as an
Sec. 5. Except as otherwise provided under state or federal law,
an employer may not use a consumer report for employment
purposes unless the following apply:
(1) The information contained in the consumer report is
substantially job related in that the position that the consumer
holds or for which the consumer is applying is a position in
which the consumer has, or would have, access to money,
other assets, or confidential information.
(2) The position of the consumer or the position for which the
consumer is applying is one (1) or more of the following:
(A) A managerial position.
(B) A position with the office of the attorney general.
(C) A position with a city, town, or county.
(D) Any law enforcement position.
(E) A position for which the information contained in the
consumer report is required to be:
(i) disclosed by law; or
(ii) obtained by the employer under state or federal law.
Sec. 6. (a) A consumer may bring a civil action against an
employer that uses the consumer's consumer report in violation of
section 5 of this chapter.
(b) If an employer violates this chapter, the court may do the
(B) a civil penalty; and
(C) court costs and reasonable attorney's fees;
to the prevailing consumer.
(2) Enjoin further violation of this chapter.
Sec. 7. An employer who knowingly and intentionally violates
this chapter commits a Class B infraction. However, the offense is
a Class A infraction if the employer has a prior unrelated
conviction or judgment for an infraction under this section.