House Bill 622 (HB 622) on Criminal Reporting

This law prohibits CRAs from including specific criminal records in consumer reports. The following records must be excluded:

• Cases involving false accusations, acquittals, or exonerations
• Nolle prosequi charges (where a prosecutor drops the case)
• Expunged records
• Cases that did not result in a guilty verdict or plea

Source: HB 622

Senate Bill 41 (SB 41) on Credit Reporting

SB 41 aligns Maryland's credit reporting standards with the Fair Credit Reporting Act (FCRA) by raising the threshold for including otherwise-expired credit information in consumer reports. Specifically, bankruptcy discharges older than ten (10) years and civil suits, judgments, tax liens, charged-off accounts, or other adverse items older than seven (7) years may only be included if the individual’s annual salary exceeds $75,000 (up from $20,000 previously).

Source: SB 41

These laws aim to protect individuals from the negative impact of erroneous or outdated information appearing in their consumer reports. Penalties for violating either of these laws include fines of up to $10,000 for the first offense and $25,000 for subsequent offenses.

The guidance on these laws apply to employers with 15 or more full-time employees who reside in Maryland. Employers should update their background screening processes to ensure compliance by October 1, 2024.

Posted: September 4, 2024

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