Puerto Rico has joined the growing list of states that preclude an employer or prospective employer from procuring an employee’s or applicant’s credit history and/or taking adverse employment action based on credit history.
On October 8, 2019, Puerto Rico Governor Wanda Vázquez Garced signed into law Act 150-2019 (the “Act”), which took effect immediately and prohibits employers (or potential employers) from:
- denying or depriving an individual from receiving benefits or compensation, refusing to hire, refusing to promote, or discriminating against an employee or applicant based upon credit history;
- verifying or investigating an employee’s or applicant’s credit history;
- taking an adverse employment action based on an employee’s or applicant’s credit history.
Positions exempt from this law include
The Act sets forth a list of positions that are exempt (but still require written consent from the employee or applicant), including, but not limited to:
- management positions;
- positions that have access to trade secrets (as defined under Puerto Rico law), financial or personal information, or cash or other goods subject to misappropriation totaling at least $10,000; or
- positions for which a credit report is required by federal law.