Puerto Rico Bans Credit Checks

On October 8,2019, Act No. 150 – “Employee Credit Information Protection Act” – went into law banning employers from using credit checks as part of their hiring decision. Employers may also not terminate, refuse to hire or promote, or otherwise discriminate against an employee or applicant based on the individual’s credit report/history.

Employers should review the law for a list of exemptions which includes (but is not limited to): managerial positions, positions regulated by the Commissioner of Financial Institutions, positions with access to financial or personal information of others, positions that require financial or fiduciary duty and positions with access to cash or other valuables in excess of $10,000.

If an exemption is met, employers must obtain written consent from the individual prior to conducting the credit check. Employers should consult with qualified legal counsel as to whether this consent requirement is met by complying with the disclosure and authorization requirements of the Fair Credit Reporting Act.

To see more information on Puerto Rico's credit check restrictions as well as other states' restrictions, download our Credit Check Restriction Guide here.