Credit Check Limitations by State and Municipality
Author: XpertHR Editorial Team
A number of states restrict when employers can conduct credit checks of job applicants or employees for screening purposes to certain types of positions. While these restrictions vary, they generally limit employer access to credit reports to positions involving financial institutions, the handling of sensitive data, jobs where the information is required by law, or where the applicant's credit report is otherwise substantially related to the current or potential job. States that have no significant credit check limitations are marked N/A.
Federal laws broadly protect individuals who have filed for bankruptcy or who have bad credit from discrimination in employment, but do not prevent an employer from conducting third-party credit checks as long as the employer meets certain authorization and notice requirements.