There is a mixed feeling on credit checks especially nowadays with this type of recession period we are having and the multiple job postings that are on the market. A business owner has the right to run a background check on who they choose to hire. A business also has every right to run a credit check on employees that will be handling money. Interestingly enough, one state has passed a law that does limit credit checks to business owners according to The Consumerist:
“Under the new law, employers may access credit checks under limited circumstances, including positions that involve: bonding or security per state or federal law; unsupervised access to more than $2,500; signatory power over businesses assets of more than $100; management and control of the business; access to personal, financial or confidential information, trade secrets, or state or national security information.”
On a more interesting note, a law has been passed in multiple states across America in 2011 stating no companies are allowed to perform noncredit checks. Pattyinglishms lists the states that took action and are no longer allowing noncredit checks to take place:
· In the Northeast: New York, New Jersey, Connecticut, Vermont, Maryland, and Pennsylvania.
· In the Midwest: Michigan, Missouri, Ohio, Indiana,
· In the South: Florida, Georgia, Kentucky, South Carolina
· In the South/West: Texas, Colorado, Arizona, New Mexico, Nevada, Arkansas
· In the West: California, Oregon, Washington, Montana, Nebraska
The reason for placing these credit checks to a stop is quite simple; it is discrimination. A job candidate must be seen for the skills he or she has to offer the company. It is discriminatory for any company to use credit-based readings to determine a job hire if the job does not require financial factors. The way for this to help is to ensure all states disallow noncredit checks.
Consider what happens when noncredit checks are performed. Each time noncredit checks occur the person’s credit is impacted because it does not have a chance to improve. With that being said, a question for legal business owners that perform noncredit checks: Why perform noncredit checks on job candidates if he or she is not applying for a financial position nor will they be handling money for the company.
The article above was meant to make readers and job seekers aware of rights a company does have and in some cases the information they have no business in viewing when it comes to a person’s job application.
Best of luck job seekers!