Equal Employment bill fights against pre-employment credit checks
47 percent of employers request credit checks prior to hiring new employees. Nine states have already banned credit checks during pre-employment screening. The intent behind the bill is that poor applicants with credit problems may have a harder time finding employment than a similar candidate with good credit, and that sometimes the things one would find in a credit report are not within our control, such as medical debt or identity theft. Meanwhile, opponents of the bill argue that some of the information that can be found in the screening — such as problems with the IRS or a past bankruptcy filing — may be an indicator of poor decision-making, and therefore should have an effect on whether or not an applicant should be eligible for specific job openings. A pre-employment credit check does not provide an employer with an actual credit score. Instead, it provides information such as whether or not the candidate pays his or her bills on time, the types of debt carried, and problems that have been flagged in court or with the Internal Revenue Service. Credit checks can bring up a lot of information about a potential candidate, but on their own, may not provide the whole picture into an applicant’s financial background or overall reliability. To get a much clearer image of a candidate’s past, it may be more beneficial to run a full pre employment background screening, in addition to the credit checks, until the bill becomes a law or is dismissed. Contact Mind Your Business to learn more about credit checks, the background check process and which one might be right for your business.]]>
You May Also Like
Check out these additional posts from Mind Your Business.
Quality and Precise Results, On Time!
Let us know about your screening needs to get a custom quote. We work with businesses big and small as well as the government. Which means we have a package of solutions for your organization as well.