California Bill To Ban Employee Credit Checks
It is pretty common practice for employers these days to do a credit check on prospective employees as a method of screening. But a new bill being introduced by California Assemblyman Tony Mendoza looks to ban employee credit checks by employers or better said will limit the requirement of a credit check by employers depending on potential position.
Currently employers have the right to ask for a credit check from all potential employees. The potential employee must give permission in the form of a signature and the bill deems this unfair and unnecessary for all jobs. The idea of the a credit check for prospective employees is that it is a clear judgment of responsibility. The relationship is drawn between this person’s behavior with their own money and credit to their all-around level of responsibility and risk if they are hired.
The bill doesn’t ban all credit checks by employers. It will depend on the title of the position that is open. Managerial positions represent one example of positions that employers could still ask for a credit check. These positions are seen as having financial responsibility allowing for the practice to continue.
This leads to the current state of the American consumers’ credit. If you just have a foreclosure as many have, this will be on your credit report for the next 7 years. Is this what will prevent you from getting that job not you experience or knowledge of a specific area?
For the employers they are just trying to lower the risk of hiring an irresponsible employee. But you have to ask are there better methods of interviewing or checking references that would allow for the same or if not better judgment.
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Tags: employer credit check, employment
Posted in Credit Score
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