Ten states, the District of Columbia, and the cities of Chicago, New York City and Philadelphia have passed laws restricting the use of credit reports used by employers for employment purposes. Bills also have been proposed in the U.S. House of Representatives and the Senate regarding consumer credit information and employment. The Equal Employment Opportunity Commission (EEOC), however, has expressed concern with employers who use criminal history screening and credit checks in their hiring decisions because it is believed that relying on this information creates a disparate impact on certain minority groups. Given the EEOCs stand on the issue, along with the Fair Credit Reporting Act s (FCRA) prohibitions, as well, employers should not directly or indirectly request credit information and/or conduct credit checks unless required to do so under state or federal law or unless an exemption is met.

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Posted Under: Credit Checks

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