Bill would limit using credit histories in hiring

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in Employment Background Check,Human Resources

Florida State Sen. Gary Siplin has introduced a bill that would limit an employer’s use of an applicant’s credit history as a hiring criterion unless it “is shown to be directly related to the position sought by the applicant.”

Even then, the bill would bar employers from using a credit history as “the determining factor in whether the applicant is ultimately hired to the position sought.” The legislation would provide an exception for cases where the law requires employers to factor in the applicant’s credit history.

Currently, no state or federal law expressly forbids employers from using credit history as a hiring criterion. Several states have moved to bar the practice in light of the poor economy. Opponents of using credit histories in hiring say it has a disparate impact on minority job applicants.

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