Credit History in Employment: Florida Laws & Your Rights

The Fair Credit Reporting Act (FCRA), 42 U.S.C. § 1681 et seq., is the primary federal law governing employer use of credit reports and other consumer reports. The FCRA requires employers to obtain written consent from job applicants or employees before requesting a credit report or background check from a consumer reporting agency. The law mandates that if an employer intends to take adverse action (such as refusing to hire or terminating employment) based on information in a credit report, the employer must provide the candidate or employee with a copy of the report and a summary of their rights under the FCRA before making the adverse decision, and provide notice afterward.

The FCRA applies to all employers that use third-party consumer reporting agencies to obtain information about applicants or employees. The Equal Employment Opportunity Commission (EEOC) enforces the FCRA and has issued guidance stating that credit checks can have a disparate impact on protected classes, particularly African American and Hispanic applicants, and low-income individuals. When an employer's use of credit reports has a disparate impact on a protected group, the employer must demonstrate that the credit check is job-related and consistent with business necessity. Employers must ensure that the decision to use credit checks is based on legitimate business reasons directly tied to the specific position. Remedies under federal law include damages for improper reporting, attorney's fees, and punitive damages in cases of willful FCRA violations.

Florida Statute § 448.095 imposes additional restrictions beyond federal law on employer access to and use of credit history. This statute specifically prohibits employers from inquiring about, considering, or making employment decisions based on an applicant's or employee's credit history, with limited exceptions. The exceptions are narrowly tailored and include positions where creditworthiness is essential, such as positions requiring bonding, positions with direct access to cash or financial accounts, positions involving access to confidential business information, and positions requiring a professional license under state law.

Florida's statute is stronger than federal law in that it creates an explicit prohibition on credit-based discrimination in employment, whereas the FCRA is a reporting transparency and process law. Under Florida law, employers cannot legally deny employment, terminate an employee, or take any adverse action based on credit history unless the employer can demonstrate that the position falls within one of the statutory exceptions. The state law applies to all employers operating in Florida, regardless of size, whereas the FCRA applies only when employers use third-party consumer reporting agencies.

Florida's law provides that employees and applicants have a right to know why a credit check is being conducted and to receive notice if an adverse employment decision is based in part or in whole on credit information. Remedies under Florida Statute § 448.095 include civil liability, with employers subject to damages for violations. Additionally, violations may be treated as unfair employment practices under Florida's broader discrimination statutes. Employees can file complaints with the Florida Commission on Human Rights (FCHR) if they believe their rights have been violated.

Florida Statute § 448.095 provides specific exceptions permitting credit checks only when the position requires creditworthiness as an essential job function. These exceptions include: (1) positions requiring a surety bond or fidelity bond; (2) positions with direct responsibility for cash handling, financial accounts, or access to funds; (3) positions with access to confidential business information or trade secrets; and (4) positions requiring a professional license issued by a state agency where creditworthiness is a statutory requirement for licensure.

Employers defending a credit check or adverse decision based on credit information must establish that the position truly falls within one of these statutory exceptions. The burden is on the employer to demonstrate job-relatedness and necessity. Courts and the Florida Commission on Human Rights have interpreted these exceptions narrowly, requiring employers to prove that creditworthiness is essential, not merely convenient or preferred.

A critical exception exists under the FCRA: the Fair Credit Reporting Act itself is not preempted by Florida law, meaning employers must still comply with FCRA procedural requirements (written consent, adverse action notice) even when using a credit check within one of the statutory exceptions. Additionally, even when a credit check is permissible, employers cannot make decisions based on information in the credit report if doing so would violate other employment laws, such as Title VII of the Civil Rights Act of 1964 (if the credit check has disparate impact on a protected class). Military service members may have additional protections under the Servicemembers Civil Relief Act.

Step 1: Document Everything. Keep detailed records of all communications about the job application or employment relationship. Save copies of the job posting, your resume, the job description, any written feedback you received, and communications with the employer or recruiter. If you were told a credit check would be conducted, save that communication. Take note of the date you applied, dates of interviews, and the date you were rejected or terminated. Document any statements made by hiring managers or HR personnel about credit history or financial background. If you have access to your credit report through a free annual report at annualcreditreport.com, pull a copy to understand what information the employer may have seen.

Step 2: Internal Complaint and Attempt Resolution. Send a written email or letter to the employer's HR department (or directly to the hiring manager or decision-maker if no HR department exists) requesting clarification about whether a credit check was conducted and whether your credit history was a factor in the employment decision. Keep the tone professional and factual. Ask the employer to explain the job-related necessity for any credit check conducted and to confirm whether your employment decision was based on credit information. Request a written response within 14 days. This demonstrates your good-faith effort to resolve the matter and creates a documented record. Many employers will reconsider or provide clarification at this stage.

Step 3: File a Complaint with the Florida Commission on Human Rights (FCHR). Visit the FCHR website at fchr.myflorida.com or call 850-488-7082 to file a charge alleging discrimination under Florida Statute § 448.095 or broader employment discrimination laws. You will need to provide your name, contact information, the employer's name and address, the date the alleged violation occurred, and a detailed description of what happened. Include specific facts: when the credit check was mentioned, who mentioned it, what position you were applying for, and why you believe the position did not fall within the statutory exceptions. You can also file a federal complaint simultaneously with the EEOC by filing at eeoc.gov or calling 1-800-669-4000. The deadline for filing with FCHR is within a certain period (generally 180 days from the violation, though this may extend in some circumstances). File as soon as possible to preserve your rights.

Step 4: Investigation Process and Expectations. After filing a complaint with FCHR, the agency will conduct an investigation. An investigator will contact both you and the employer to gather facts, review documents, and determine whether the employer violated Florida law. The investigation typically takes 60 to 120 days, though complex cases may take longer. The investigator will ask the employer for documentation, including the job description, the job posting, records showing why the credit check was conducted, the results of the credit check (if obtained), and evidence that creditworthiness was essential to the position. You may be asked to provide additional information or clarify your complaint. You have the right to request a hearing before the Florida Commission on Human Rights if you disagree with the investigator's findings. Expect to be contacted by phone and/or email by the investigator during this process.

Step 5: Consult an Attorney. If the internal complaint process does not resolve the issue, or if the FCHR investigation does not result in a favorable finding, consult an employment law attorney. Employment discrimination cases require expertise in both substantive law and procedural rules. An attorney can evaluate the strength of your case, advise on whether to pursue a hearing before FCHR, determine if federal claims under the FCRA or Title VII are viable, and represent you in administrative or court proceedings. Many employment attorneys work on contingency for discrimination cases, meaning you pay no upfront fee if they take your case. Start by seeking a free consultation with an attorney licensed in Florida who specializes in employment law and has experience with credit discrimination claims.