Very Little Movement on Legislation Banning Credit Checks
In March 2010 we reported that many states and the federal government are considering legislation that would ban the use of credit checks in the employee screening process (“State and Federal Governments Consider Ban on Credit Checks for Most Applicants”). To date, there has been very little movement. Oregon enacted a law earlier in March, and Illinois approved a similar bill in May, but measures in nine other states died when their sessions ended, and Maryland’s proposed legislation never made it to the floor for consideration by either the House of Delegates or the State Senate.
In New Jersey, the bill faces stiff opposition from the New Jersey Business and Industry Association and the New Jersey Chapter of the National Federation of Independent Business. The legislation would ban employers from performing credit checks unless the candidates are in the financial services industry, or another type of job that involves handling money. Opponents fear the legislation, if passed, would undermine employers’ legitimate hiring practices and put them at a competitive disadvantage.