ARIZONA STATE SENATE
Phoenix, Arizona
employee blacklisting;
mortgage bankers; brokers
Permits commercial mortgage bankers, mortgage bankers, and mortgage brokers to inform potential employers of actions by the potential employee when requested to provide a job reference.
Background
Currently, statute prohibits “blacklisting” activities among professionals for the purpose of preventing that person from engaging in a useful occupation. Certain activities by employers, however, are permitted and not considered “blacklisting”. For instance, school districts are allowed to provide information resulting from a fingerprint check to other school districts, as long as certain criteria are followed.
Currently, banks, savings and loan associations, credit unions and escrow agents are permitted to provide written employment references which advises of an applicants’ involvement in illegal activities reported to federal and state officials. These institutions are immune from civil liability as long as a copy of the reference is mailed to the last known address of the subject, is not intentionally inaccurate, and is not made with malice. Commercial mortgage bankers, mortgage bankers, or mortgage brokers are not included in this immunity from civil liability.
H.B. 2120 includes commercial mortgage bankers, mortgage bankers, or mortgage brokers in the list of financial institutions that are immune from civil liability for providing employment reference regarding malfeasance of a former employee.
According the State Banking Department, there is no anticipated cost to the general fund.
Provisions
1. Grants immunity from civil liability to commercial mortgage bankers, mortgage bankers, and mortgage brokers when they provide written information about illegal activities by a former employee to a financial institution who is a potential employer as long as:
a) The activities and employee in question were reported to federal or state authorities;
b) A copy of the employee reference to be sent to the last known address of the applicant in question;
c) The potential employer requested the information and reference.
2. Removes civil liability immunity if the institution provides information that is false and does so with knowledge and malice.
3. Makes technical changes.
4. Provides for a general effective date.
Prepared by Senate Staff
February 13, 2001