The New York State Legislature is considering restricting employers’ ability to check job applicants’ credit. Critics of pre-employment credit checks have noted that the economic downturn has forced many people to miss payments, and that the practice may unreasonably rule out large numbers of applicants.
Democrat Michael Benjamin, who sponsors the bill, told USA Today, “Employers do the checks routinely without showing there’s any connection to the job.”
For example, the federal Transportation Security Agency will not hire anyone with $5,000 or more in overdue debt. The practice effectively bars 22% of the agency’s applicants.
The EEOC has long held that credit checks should only be used for jobs with fiduciary responsibilities. The EEOC also notes that credit checks often disproportionately screen out minorities and females.
Note: Employers that run credit checks on applicants could find themselves the target of a disparate impact lawsuit.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/9140/proposed-ny-law-would-stymie-credit-checks-on-job-applicants "
- Promoting employees from rank-and-file to boss? Make sure their training includes retaliation
- Checklist: throwing an end-of-year party
- Bullet-proof your promotions process
- Rogue manager's alleged harassment could cost McDonald's
- Record of support for pregnant women, working moms helps win discrimination cases