May An Employer Run A Credit Check On An Applicant?
Q : May an employer run a credit check on an applicant?
A : A credit check should be used only where the information is necessary for job-related purposes. Court cases under Title VII have held that requiring good credit as a condition of employment can have a discriminatory result, since disproportionately more non-whites than whites live below the poverty level. Even if a credit check is necessary for the job in question, the Fair Credit Reporting Act (a federal law) requires employers to notify applicants if they are not hired due to the information contained in a credit report. Moreover, some state laws, such as in Maine and New York, require employers to notify applicants when a consumer credit report is requested. See the "Consumer Credit" chapter for more details on credit reporting.
Family Legal Guide
Copyright © 2000, 2002 American Bar Association
