Does your state or municipality restrict you from using credit history reports in your hiring decisions? As an employer, you must know the laws in each and every jurisdiction where you do business, where your applicants and employees reside and even where they are interviewed.
Credit checks are useful, especially for certain employment positions such as jobs working with company finances and confidential information. However, employers are becoming increasingly restricted in their ability to pull credit reports on applicants and employees. Ten states (CA; CO; CT; HI; IL; MD; NV; OR; VT; and WA), the District of Columbia, and three cities (New York City, Chicago, and Philadelphia) have passed laws restricting the use of credit reports used by employers for employment purposes. More certainly will follow.
The laws impose serious monetary penalties and there has been a surge of private litigation which must be defended. Therefore, employers should not request credit information including running credit reports unless either required or allowed by law. Employers throughout the United States, and particularly multi-state employers, should continue to monitor developments in this and related areas of the law, particularly laws restricting the use of credit history information.
Employment counsel should be consulted. Information including sample documents should NOT be construed as legal advice, guidance or counsel. Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state and local laws. National Credit and Screening Co., LLC expressly disclaims any warranties or responsibility, or damages associated with or arising out of information provided.
- Posted by ncs_admin
- On July 30, 2018