Job Seeker with Poor Credit History? Help May Be on the Way
Oregon recently joined Washington and Hawaii as the only states that have banned the use of credit history for employment purposes. As it stands with most states, employers can choose to make their hiring decisions based upon a candidate’s credit history under the Fair Credit Reporting Act.
However, in order to do so prior to running a credit check, they must notify these prospective candidates and receive their consent. Would you say “no” to a potential employer doing so? Probably not. The employer must provide information on the means in which they obtained the report if they do in fact reject an applicant based on their credit history.
Most consider this to be an unfair advantage for employers, since it can be seen as discriminatory. This is because some credit histories could have been tarnished in the past due to an unforseen circumstance, which lead to future financial shortcomings that prevent them from obtaining employment.
If the movement of passing legislation to protect job seekers continues to spread state by state, potential employees may have an easier time getting a job if their state passes a law limiting or even banning employment credit checks.
As of July 1st, 2010, according to Senate Bill1045 passed by the Oregon Legislature, it will be “unlawful for an employment practice for an employer to obtain or use for employment purposes information contained in the credit history of an applicant for employment or an employee, or to refuse to hire, discharge, demote, suspend, retaliate or otherwise discriminate against an applicant or an employee with regard to promotion, compensation or the terms, conditions or privileges of employment based on information in the credit history.”
Other states that have followed suit in submitting laws that bind this practice include California, Connecticut, Georgia, Illinois, Indiana, Maryland, Missouri, Montana, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Vermont, and Wisconsin. Is your state on the list?
