LRB-2446/1
GMM:med&jld:lmp
2011 - 2012 LEGISLATURE
October 31, 2011 - Introduced by Representatives Berceau, Grigsby, Zamarripa,
Pasch, Hebl, Bewley, Roys, Pocan, Turner, Fields, E. Coggs, Pope-Roberts,
C. Taylor
and Sinicki, cosponsored by Senators Taylor and Hansen. Referred
to Committee on Labor and Workforce Development.
AB350,1,3 1An Act to amend 111.31 (1), 111.31 (2), 111.31 (3) and 111.321; and to create
2111.32 (3g) and 111.333 of the statutes; relating to: employment
3discrimination based on credit history.
Analysis by the Legislative Reference Bureau
Current law prohibits discrimination in employment on the basis of age, race,
creed, color, disability, marital status, sex, national origin, ancestry, sexual
orientation, arrest record, conviction record, military service, use or nonuse of a
lawful product off the employer's premises during nonworking hours, or declining to
attend a meeting or to participate in any communication about religious or political
matters. Current law also specifies that employment discrimination because of
arrest record includes requesting an individual to supply information regarding any
arrest record, except when employment depends on the bondability of the individual,
and that employment discrimination because of conviction record does not include
refusing to employ an individual who has been convicted of an offense the
circumstances of which substantially relate to the circumstances of the particular job
or who is not bondable when employment depends on the bondability of the
individual.
This bill prohibits employment discrimination based on credit history. The bill
specifies that employment discrimination because of credit history includes an
employer, labor organization, employment agency, licensing agency, or other person
requesting an applicant, employee, member, licensee, or any other individual, on an
application form or otherwise, to authorize that person to procure the individual's

credit history, except that it is not employment discrimination to request that
authorization: 1) if the circumstances of an individual's credit history are
substantially related to the circumstances of a particular job or licensed activity; or
2) if employment, membership, or licensing depends on the bondability of the
individual and the individual may not be bondable due to his or her credit rating.
The bill also specifies that it is not employment discrimination because of credit
history to refuse to employ, admit, or license, or to bar or terminate from employment,
membership, or licensing, any individual if: 1) the circumstances of an individual's
credit history are substantially related to the circumstances of the particular job; or
2) if the individual is not bondable when bondability is required by state or federal
law, administrative regulation, or established business practice of the employer.
Under the bill, "credit history" means information provided in a consumer
report under the federal Fair Credit Reporting Act (FCRA), which defines "consumer
report" as any written, oral, or other communication by a consumer reporting agency
bearing on an individual's creditworthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of living, which is
used or expected to be used as a factor in establishing the individual's eligibility for
credit, insurance, employment, or any other purpose allowed under federal law. The
FCRA further defines "consumer reporting agency" as any person who, for monetary
fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part
in the practice of assembling or evaluating consumer credit information or other
information on individuals for the purpose of furnishing consumer reports to third
parties, and who uses any means or facility of interstate commerce for the purpose
of preparing or furnishing consumer reports.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB350, s. 1 1Section 1. 111.31 (1) of the statutes is amended to read:
AB350,3,92 111.31 (1) The legislature finds that the practice of unfair discrimination in
3employment against properly qualified individuals by reason of their age, race,
4creed, color, disability, marital status, sex, national origin, ancestry, sexual
5orientation, arrest record, conviction record, credit history, military service, use or
6nonuse of lawful products off the employer's premises during nonworking hours, or
7declining to attend a meeting or to participate in any communication about religious
8matters or political matters, substantially and adversely affects the general welfare

1of the state. Employers, labor organizations, employment agencies, and licensing
2agencies that deny employment opportunities and discriminate in employment
3against properly qualified individuals solely because of their age, race, creed, color,
4disability, marital status, sex, national origin, ancestry, sexual orientation, arrest
5record, conviction record, credit history, military service, use or nonuse of lawful
6products off the employer's premises during nonworking hours, or declining to
7attend a meeting or to participate in any communication about religious matters or
8political matters, deprive those individuals of the earnings that are necessary to
9maintain a just and decent standard of living.
AB350, s. 2 10Section 2. 111.31 (2) of the statutes is amended to read:
AB350,3,2311 111.31 (2) It is the intent of the legislature to protect by law the rights of all
12individuals to obtain gainful employment and to enjoy privileges free from
13employment discrimination because of age, race, creed, color, disability, marital
14status, sex, national origin, ancestry, sexual orientation, arrest record, conviction
15record, credit history, military service, use or nonuse of lawful products off the
16employer's premises during nonworking hours, or declining to attend a meeting or
17to participate in any communication about religious matters or political matters, and
18to encourage the full, nondiscriminatory utilization of the productive resources of the
19state to the benefit of the state, the family, and all the people of the state. It is the
20intent of the legislature in promulgating this subchapter to encourage employers to
21evaluate an employee or applicant for employment based upon the individual
22qualifications of the employee or applicant rather than upon a particular class to
23which the individual may belong.
AB350, s. 3 24Section 3. 111.31 (3) of the statutes is amended to read:
AB350,4,11
1111.31 (3) In the interpretation and application of this subchapter, and
2otherwise, it is declared to be the public policy of the state to encourage and foster
3to the fullest extent practicable the employment of all properly qualified individuals
4regardless of age, race, creed, color, disability, marital status, sex, national origin,
5ancestry, sexual orientation, arrest record, conviction record, credit history, military
6service, use or nonuse of lawful products off the employer's premises during
7nonworking hours, or declining to attend a meeting or to participate in any
8communication about religious matters or political matters. Nothing in this
9subsection requires an affirmative action program to correct an imbalance in the
10work force. This subchapter shall be liberally construed for the accomplishment of
11this purpose.
AB350, s. 4 12Section 4. 111.32 (3g) of the statutes is created to read:
AB350,4,1413 111.32 (3g) "Credit history" means information provided in a consumer report,
14as defined in 15 USC 1681a (d).
AB350, s. 5 15Section 5. 111.321 of the statutes is amended to read:
AB350,4,23 16111.321 Prohibited bases of discrimination. Subject to ss. 111.33 to
17111.365, no employer, labor organization, employment agency, licensing agency, or
18other person may engage in any act of employment discrimination as specified in s.
19111.322 against any individual on the basis of age, race, creed, color, disability,
20marital status, sex, national origin, ancestry, arrest record, conviction record, credit
21history,
military service, use or nonuse of lawful products off the employer's premises
22during nonworking hours, or declining to attend a meeting or to participate in any
23communication about religious matters or political matters.
AB350, s. 6 24Section 6. 111.333 of the statutes is created to read:
AB350,5,7
1111.333 Credit history; exceptions and special cases. (1) Employment
2discrimination because of credit history includes an employer, labor organization,
3employment agency, licensing agency, or other person requesting an applicant,
4employee, member, licensee, or any other individual, on an application form or
5otherwise, to authorize that person to procure the individual's credit history, except
6that it is not employment discrimination to request that authorization if any of the
7following applies:
AB350,5,98 (a) The circumstances of an individual's credit history are substantially related
9to the circumstances of a particular job or licensed activity.
AB350,5,1310 (b) Employment, membership, or licensing depends on the bondability of the
11individual under a standard fidelity bond or when an equivalent bond is required by
12state or federal law, administrative regulation, or established business practice of
13the employer and the individual may not be bondable due to his or her credit history.
AB350,5,16 14(2) Notwithstanding s. 111.322, it is not employment discrimination because
15of credit history to refuse to employ, admit, or license, or to bar or terminate from
16employment, membership, or licensing, any individual if any of the following applies:
AB350,5,1817 (a) The circumstances of the individual's credit history are substantially
18related to the circumstances of the particular job or licensed activity.
AB350,5,2119 (b) The individual is not bondable under a standard fidelity bond or an
20equivalent bond when that bondability is required by state or federal law,
21administrative regulation, or established business practice of the employer.
AB350, s. 7 22Section 7. Initial applicability.
AB350,6,223 (1) This act first applies to an employee who is affected by a collective
24bargaining agreement that contains provisions inconsistent with this act on the day

1on which the collective bargaining agreement expires or is extended, modified, or
2renewed, whichever occurs first.
AB350,6,33 (End)
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