The Equal Employment Opportunity Commission (EEOC) has filed a lawsuit challenging the use of credit checks in the hiring process, alleging that they were neither job-related nor justified by business necessity and the practice has a racially discriminatory impact.
Credit checks in employment have been a recent focus for the EEOC, which held a hearing on the issue in October 2010 and recently warned against the potential for illegal discrimination when they are used. A legislative proposal (H.R. 3149) was introduced by Rep. Steve Cohen (D-TN) during the last Congress that would have limited the use of credit reports in employment decisions to government positions, jobs involving national security and financial institution managers and executives. The House Subcommittee on Financial Institutions and Consumer Credit held a hearing on Sept. 23, 2010, but the bill was not considered.
Credit checks in employment have been a recent focus for the EEOC, which held a hearing on the issue in October 2010 and recently warned against the potential for illegal discrimination when they are used. A legislative proposal (H.R. 3149) was introduced by Rep. Steve Cohen (D-TN) during the last Congress that would have limited the use of credit reports in employment decisions to government positions, jobs involving national security and financial institution managers and executives. The House Subcommittee on Financial Institutions and Consumer Credit held a hearing on Sept. 23, 2010, but the bill was not considered.
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