News

New Orleans restricts use of consumer credit checks

by H. Mark Adams

A new ordinance in New Orleans will prohibit contractors doing business with the city from using consumer credit background checks and consumer credit history in making new-hire and other employment decisions. The ordinance will affect new city contracts entered into on or after December 23.

Employees who perform fewer than 40 hours of work in a calendar year in New Orleans under a city contract aren’t covered by the new ordinance, which includes exceptions for employees in sensitive positions such as:

  • Employees with fiduciary responsibilities for assets valued at $10,000 or more;
  • Employees required by law to hold certain security clearances;
  • Employees with access to trade secrets or information involving criminal investigations; and
  • Employees involved in counterterrorism.

For more information on the New Orleans ordinance, see the September issue of Louisiana Employment Law Letter.

H. Mark Adams is a partner with Jones Walker LLP in New Orleans. He can be reached at madams@joneswalker.com.