The EEOC Chair commented
that the discussion
provided important input
into EEOC's work to
ensure that "the
workplace is made free
of all barriers to equal
opportunity." She also
said that as a result of
high unemployment
forcing more people into
the job market, an
increasing number of job
applicants are exposed
to employment background
screening tools such as
credit checks that could
unfairly exclude them
from job opportunities.
The Commission heard
from a diverse set of
experts, including one
from the National
Consumer Law Center (NCLC)
who expressed concerns
that the use of credit
histories creates a
"Catch-22" situation for
job applicants during
the current period of
high unemployment and
high foreclosures, both
of which have negative
impacts on credit.
Others explained using
credit histories for
employment purposes can
have a disparate impact
on protected groups,
including people of
color, women, and the
disabled.
Representatives from the
business community -
including the U.S.
Chamber of Commerce (USCC)
and the Society for
Human Resources
Management (SHRM) - told
the Commission that the
use of credit histories
is permissible by law,
limited in scope, and
predictive in certain
situations of
reliability. A recent
survey from SHRM
revealed that 13 percent
of organizations conduct
credit checks on all job
candidates and another
47 percent consider
credit history for
selected jobs. Also, it
is the experience of
SHRM member companies
that few organizations
utilize credit histories
for every job opening.
However, an industrial
psychologist said that
there is little research
exploring the
implications of using
credit checks in the
employment context and -
given the potential for
discriminatory exclusion
- he concluded that it
would be wise to use an
applicant's credit
history only within the
context of a thorough
background check.
On October 28, the
Lawyers' committee for
Civil Rights Under Law
hosted a discussion
entitled "Employers'
Misuse of Credit Checks"
This is clearly not a
favorable title so it is
fairly obvious what
their agenda is. If you
are interested,
Click Here to see
the agenda they had.
Watch for changes in the
law regarding credit
reports in the future.
