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SB 2324

AN ACT RELATING TO LABOR AND LABOR RELATIONS -- CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT -- DECEPTIVE TRADE PRACTICES

2026 Regular Session Introduced by Jonathon Acosta and 9 co-sponsors

Rhode Island bans using credit history in hiring decisions, allows limited exceptions with notice/consent, and enables penalties or private suits for violations.

04/29/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2324

Summary: SB 2324 (2026) – Rhode Island

Jurisdiction: Rhode Island
Session: 2026
Introduced: January 23, 2026
Committee: Senate Labor & Gaming

Title: AN ACT RELATING TO LABOR AND LABOR RELATIONS — CONSUMER CREDIT HISTORY EMPLOYMENT PROTECTION ACT — DECEPTIVE TRADE PRACTICES

Sponsors: Quezada, Acosta, Kallman, Bissaillon, Valverde, Bell, DiMario, Lauria, Zurier, Vargas (plus several co-sponsors)

1) Purpose and Intent

  • Prohibits employers from using an applicant’s credit history or financial background in hiring decisions.
  • Aims to protect job applicants from credit history inquiries and related discrimination in the hiring process.
  • Creates enforcement and remedies via the Rhode Island Department of Labor and Training (DLT) and civil action options for aggrieved individuals or organizations.

2) Key Provisions and Changes

A. Prohibition on Use of Credit History in Hiring

  • Employers may not:
    • Ask about a job applicant’s financial past during interviews.
    • Include questions about credit history on job applications.
    • Seek or rely on credit checks when making hiring decisions.

B. Exceptions (Credit Checks Permissible Under Certain Conditions)

Credit checks are allowed if the position:
1. Requires a credit check under federal or state law.
2. Requires a national security clearance.
3. Grants signatory authority over third-party funds or assets valued at $10,000 or more.
4. Is a non-clerical position with regular access to trade secrets, intelligence information, or national security information.
5. Involves regular duties to modify digital security systems to prevent unauthorized use of networks or databases (i.e., cybersecurity-related roles).

  • For positions that fall under these exceptions, employers must:
    • Provide notice to the applicant that a credit report will be sought.
    • Obtain written authorization/consent from the applicant before performing the credit check.

C. Administrative Enforcement (Department of Labor and Training)

  • A job applicant may file a complaint with the DLT if a violation is alleged.
  • The DLT may conduct an adjudicatory proceeding and impose administrative penalties up to $10,000 per violation.

  • Penalty factors include:

    • Severity of the violation
    • Prior violations
    • Employer size (employee count and revenue)
    • Employer’s knowledge (actual or constructive)

  • Penalty proceeds are to be equally shared between the DLT and the complainant.

D. Civil Action (Private Right of Action)

  • An aggrieved employee or representative organization may file a civil action within 3 years of the violation.
  • Remedies include up to $10,000 in presumed damages, plus reasonable attorneys’ fees and costs.
  • Damages must consider the same factors used by the DLT in penalty determinations.
  • Civil action may be brought instead of, but not in addition to, DLT enforcement.

E. Related Deceptive Trade Practices Provisions

  • The bill also amends Section 6-13.1-21 to require notice to individuals when a credit report may be requested in employment, and to require disclosure of the credit bureau involved if adverse action occurs.

F. Effective Date

  • Takes effect upon passage.

3) Who/What is Affected

  • Prospective job applicants in Rhode Island.
  • Employers operating in Rhode Island who would otherwise use or request credit history in hiring decisions.
  • Rhode Island Department of Labor and Training (enforcement agency).
  • Civil plaintiffs (individuals or employee organizations) alleging violations.

4) Procedural and Timeline Aspects

  • If a violation is alleged, the process can proceed via:
    • Administrative action by the DLT (penalties up to $10,000 per violation; shared with complainant).
    • Civil action in court (damages up to $10,000, plus fees and costs).
  • Affected individuals have a 3-year window to file a civil action after the alleged violation.
  • The act is effective upon passage.

5) Practical Implications

  • Strengthens protections against automatic or discriminatory use of credit history in hiring.
  • Aligns Rhode Island practices with broader employment fairness trends.
  • May reduce reliance on credit history as a screening tool, particularly for non-financially sensitive roles.
  • Introduces clear notice and consent requirements for any permissible credit checks.
  • Provides both administrative and private remedies to enforce compliance.

Compiled from official sources — confirm details with the bill’s official record.

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