In what’s becoming a mini-trend, another state has passed a law prohibiting the use of credit checks in employment.
California Governor Jerry Brown recently signed a state law banning the practice. California thus joins a growing list of state with similar statutes, which includes Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington.
The California law does include exemptions from the ban. These include applicants for certain management-level jobs, law enforcement, positions whose duties would include access to customer’s personal data, and jobs calling for the direct handling of money.
Generally, the practice of using credit checks as a screening tool has become less common among U.S. employers.
You’ll remember the EEOC held hearings on the practice some months ago. At that session, several speakers testified that the use of credit histories in the employment context can have a disparate impact on a range of protected groups.
And that could expose employers who use credit checks to charges of discriminatory hiring practices.
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