Bill
HB 4264
Michigan bans using or asking for a job applicant’s credit history in hiring, with limited exceptions, and allows private lawsuits for violations.
Status and timeline
- Introduced: March 10, 2025 (House introduction reproduced 03/18/2025)
- Enacted: Signed by the Governor on June 20, 2025
- Effective date: September 1, 2025
- Bill short title: "Job Applicant Credit Privacy Act"
Purpose
- To restrict employers from using a job applicant’s credit history in recruiting or hiring decisions and to prohibit employers from asking about an applicant’s credit history, while creating limited statutory exceptions, anti‑retaliation protections, and a private right of action for violations.
Key definitions
- "Credit history": information commonly used to evaluate creditworthiness, such as debt payment records or a credit score compiled by a consumer credit agency.
- "Employer": an individual or entity (or agent) that accepts applications for employment or allows one or more individuals to work.
Major provisions
- Prohibitions (Sec. 5):
- Employers shall not refuse to hire or recruit an individual because of the individual's credit history.
- Employers shall not inquire about a job applicant’s or potential applicant’s credit history (covering application questions and similar inquiries).
- Exceptions (Sec. 5(2)): The prohibitions do not apply when "good credit history" is an established bona fide occupational requirement for the particular position or classification. The bill lists examples where this may apply:
- State- or nationally-chartered banks, bank holding companies, affiliates/subsidiaries
- State- or federally-chartered savings & loans, savings banks, credit unions, affiliates/subsidiaries
- Persons licensed or registered under article 7 of Michigan’s Occupational Code (MCL 339.720–339.736)
- Casinos
- Anti‑retaliation (Sec. 7): Employers may not retaliate or discriminate against an individual for participating in investigations or opposing violations of the act.
- Waiver prohibition (Sec. 9): Employers may not require applicants to waive rights under the act as a condition of applying or receiving an offer; any such waiver is void.
- Remedies and enforcement (Sec. 11): A person injured by a violation may bring a civil action for damages and/or injunctive relief. Prevailing plaintiffs are entitled to costs and reasonable attorney fees.
Who is affected
- Employers and their agents operating in Michigan (including private employers and public entities) — they must avoid using or asking for credit history in hiring/recruiting except where listed exceptions apply.
- Job applicants and potential applicants — gain privacy protections and a private right of action if rights are violated.
- Entities in the enumerated exception categories (banks, credit unions, licensed article 7 businesses, casinos) — may continue to use credit history where it is a bona fide occupational requirement.
Practical effects and notes
- The law bars both adverse hiring decisions based on credit history and routine inquiries about credit history at recruitment and application stages, narrowing employers’ use of credit-based screening.
- Enforcement is through private lawsuits; the text does not establish an administrative enforcement mechanism.
- The statute permits an inquiry or employment action only where good credit history is legitimately required for the job classification named in the bill.
Compiled from official sources — confirm details with the bill’s official record.
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