Employer Law Report

Tag Archives: credit check

FTC’s Interim Report to Congress on National Study of Credit Report Accuracy Warrants Pause Before Doing Credit History Checks on Employment Candidates

There has been a lot of discussion lately about the EEOC’s decision to sue Kaplan Higher Education Corporation on the grounds that its policy of using credit histories as part of its applicant screening process had a discriminatory impact on minorities. Also, as noted at the end of last year in the Delaware Employment Law Blog, Illinois just became the fourth state to prohibit employers from disqualifying candidates based on credit history and, as of last summer, 15 other states had similar legislation pending. Ohio’s bill, which was introduced in 2009, never gained any traction. Though I continue to believe that an …

EEOC Public Meeting Addresses Use of Credit History As Screening Tool

Last Wednesday, the EEOC held a public meeting at which it took testimony to address the perceived ills associated with the use of applicant credit histories in making hiring or other employment decisions. With unemployment at such high levels across the country, employer credit checks have come under greater scrutiny. Back in August, Illinois enacted the Employee Credit Privacy Act, which prohibits, with limited exception, an employer from using a person’s credit history in making employment decisions. 

As we reported last year, Ohio’s legislature considered a credit check ban as well, but that bill went nowhere. The EEOC’s press release can be …