Bill Prohibiting Pre-Employment Credit Checks is Introduced

  27 July 2016

Senator Elizabeth Warren, a Democrat from Massachusetts, has proposed the “Equal Employment for All Act” along with six other senators.

Pursuant to the proposed legislation, employers would be prohibited from requiring prospective employees to go through a credit check or from rejecting them due to negative information in a credit report. According to a report released this year from liberal think-tank Demos, one in ten unemployed Americans have been denied a job due to information in their credit reports. And such background checks are conducted for all kinds of positions -- from entry level to seniormanagement. Warren, and other advocates of the bill, contend that as a result of this practice, many people are being kept out of the labor market, and they are usually the ones who need jobs the most. In addition, there is no proven correlation between a person's credit and job performance, and these checks have also been shown to unfairly impact certain groups of people -- including women, minorities, students and seniors. Read More.