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HB 3277

Relating to military spouses.

2025 Regular Session Introduced by Paul Evans

HB 3277 tightens limits on collecting and using SSNs and credit history in hiring, limiting inquiries and requiring SSN only for completed background checks.

In committee upon adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 3277

Summary — HB 3277 (2025) — Relating to military spouses / employment credit privacy

Status: In committee upon adjournment (last action: 2025-06-28)
Introduced: February 2025 (filed Feb 6; first reading Feb 18) by Rep. Joyce Mason. Cosponsor: Rep. Camille Y. Lilly. Related/companion: HB 3380. Legal reference: amends Employee Credit Privacy Act (820 ILCS 70/10).

Purpose / intent

HB 3277 amends the Employee Credit Privacy Act to strengthen limits on employer collection and use of applicants’ Social Security numbers (SSNs) and to restate existing limits on use of credit history in employment decisions. The bill intends to reduce unnecessary collection of SSNs during hiring and to restrict employer inquiries and use of consumer credit information except in narrowly defined, job-related circumstances.

Key provisions

  • Prohibitions (reinforces and clarifies):

    • Employers may not fail/refuse to hire, discharge, or otherwise discriminate against an individual because of that individual’s credit history or credit report.
    • Employers may not inquire about an applicant’s or employee’s credit history.
    • Employers may not order or obtain an applicant’s or employee’s credit report from a consumer reporting agency.
    • Employers shall not order or obtain an applicant’s or employee’s Social Security number — with a single exception below.

  • Social Security number exception:

    • An employer may obtain an applicant’s SSN only for the purpose of conducting a background check, and only “at the time the background check is completed.” (The bill separately clarifies that this prohibition does not prevent an employer from obtaining an employee’s SSN after the employee has been hired.)

  • Exceptions allowing use of credit history/credit checks (credit history may be a bona fide occupational requirement only if at least one applies):

    1. State or federal law requires bonding or other security for the position.
    2. Duties include custody of or unsupervised access to cash or marketable assets valued at $2,500 or more.
    3. Duties include signatory power over business assets of $100 or more per transaction.
    4. The position is managerial and involves setting the direction or control of the business.
    5. The position involves access to confidential information, trade secrets, or state/national security information.
    6. The position meets criteria promulgated by the U.S. Department of Labor or Illinois Department of Labor establishing when credit history is a bona fide occupational requirement.
    7. The credit history is otherwise required by or exempt under federal or state law.

Who is affected

  • Primary: private and public employers and job applicants in Illinois.
  • Secondary: HR departments, background screening vendors, recruiting platforms, and applicants who currently provide SSNs during the hiring process.
  • Employees are still subject to post-hire SSN collection (e.g., payroll/tax compliance).

Practical impact and considerations

  • Privacy/protection: reduces unnecessary early collection of SSNs, lowering identity-theft risk and limiting employer access to sensitive information.
  • Hiring operations: may require employers and background-check vendors to adjust processes (timing of SSN submission, consent workflows) to comply with the “at time background check is completed” language.
  • Narrow exceptions preserve employers’ ability to use credit information where statutorily or operationally necessary (bonding, cash access, signatory authority, managerial/secure positions).
  • Enforcement/penalties: the bill modifies statutory prohibitions but does not specify new penalties in the text excerpt; enforcement mechanism would follow the Employee Credit Privacy Act’s existing framework unless otherwise amended.

Legislative status & timeline highlights

  • Filed with Clerk: Feb 6, 2025.
  • First reading/referred to Rules: Feb 18, 2025.
  • Assigned to Labor & Commerce Committee (Mar 11); Do Pass recommendation from Labor & Commerce (Mar 19).
  • Read and placed on Calendar for Second Reading; held on Calendar (Mar 20–26).
  • Re-referred to Rules Committee under Rule 19(a) (Apr 11).
  • Cosponsor added (Rep. Camille Y. Lilly) on Apr 8.
  • In committee upon adjournment (Jun 28, 2025).

If you want, I can draft a short one‑page explainer for employers outlining operational steps to comply with this bill (when/where to collect SSNs, revised consent language for background checks, vendor contract considerations).

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

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