Determine When to Run a Credit Check for Employment Purposes
- Employers should use caution when using credit checks for employment purposes but may have legitimate business reasons for the use of credit information in hiring, especially if a financial position is involved.
- Be aware, however, that an increasing number of states limit the use of credit checks by employers because of discrimination concerns. It is critical that an employer is aware of relevant state requirements before using credit checks as a hiring tool.
- Some good credit requirements may be seen as having a disparate impact on otherwise qualified minority job applicants under federal civil rights law.