by Roy Maurer – SHRM
The House Committee on Financial Services on July 11 passed legislation that would prohibit employers from using credit reports for employment decisions, except when required by law or for a national security clearance.
The bill would also prohibit hiring managers from asking questions about applicants' financial past during job interviews or including questions about credit history on job applications.
Opponents of the practice say that it blocks upward mobility, disproportionately affects minority job seekers and can be an invasion of privacy.
On the other hand, those in favor of credit checks on job candidates argue that the information is an indicator of a person's judgment and potential risk to the organization, especially for certain positions involving finances and accounting.