There are many ways reasons workers are turned down for jobs. However some applicants may be surprised to learn they can be denied for a job because of something on their credit reports. Employers have begun to use credit checks to exclude people putting in applications.
Employers allowed to keep people from jobs by prying into their financial affairs. They can bar workers from employment in all but 8 states. For job seekers, this means that bad credit or a recent bankruptcy could prove to be a formidable roadblock in securing employment.
San Antonio Bankruptcy Attorney, Gerald Moton, considers this use of consumer credit information unfair.
"It is important that these credit reports in the employment process not be used to obstruct the efforts of individuals to better themselves and move on with their lives through use of the constitutionally sanctioned bankruptcy process,” said Mr. Moton.
It is estimated, if used across the board, this practice would disproportionately affect the unemployed, people of color, elderly and the 47% of Americans who have trouble paying their medical bills, according to Demos.org. The consumer advocacy group and other like it are pushing back against this trend, and in a published report said, “employment credit checks illegitimately obstruct access to jobs”.
However, arguments have been made by some human resource professionals that the credit checks are not used that often. Advocates also argue the checks are only used for some jobs, and that they do not play a key role in decision making for employers.
Earlier this year, Rep. Steve Cohen [D-TN] introduced legislation to stop this practice nationally, but govwatch.us, a legislative tracking tool, has the odds of bill passing committee at just three-percent.
Employers allowed to keep people from jobs by prying into their financial affairs. They can bar workers from employment in all but 8 states. For job seekers, this means that bad credit or a recent bankruptcy could prove to be a formidable roadblock in securing employment.
San Antonio Bankruptcy Attorney, Gerald Moton, considers this use of consumer credit information unfair.
"It is important that these credit reports in the employment process not be used to obstruct the efforts of individuals to better themselves and move on with their lives through use of the constitutionally sanctioned bankruptcy process,” said Mr. Moton.
It is estimated, if used across the board, this practice would disproportionately affect the unemployed, people of color, elderly and the 47% of Americans who have trouble paying their medical bills, according to Demos.org. The consumer advocacy group and other like it are pushing back against this trend, and in a published report said, “employment credit checks illegitimately obstruct access to jobs”.
However, arguments have been made by some human resource professionals that the credit checks are not used that often. Advocates also argue the checks are only used for some jobs, and that they do not play a key role in decision making for employers.
Earlier this year, Rep. Steve Cohen [D-TN] introduced legislation to stop this practice nationally, but govwatch.us, a legislative tracking tool, has the odds of bill passing committee at just three-percent.
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