Over the past several years there has been a growing trend to limit employers’ ability to see and use credit information to make hiring and other employment decisions.
At the federal level, the Equal Employment Opportunity Commission has scrutinized the use of credit information and identified potential violations of federal discrimination laws that could
arise from the use of credit checks. At the state and local levels, numerous jurisdictions have passed laws restricting inquiries into and the use of credit information by employers.
Given this trend, it is critical for employers, particularly multi-state employers, to fortify their compliance with the range of laws that govern inquiries into and the use of credit information for employment purposes.
To assist with that effort, we provide below an overview of:
(1) the EEOC’s position on the use of credit information by employers
(2) state and local laws restricting inquiries into and the use of credit information by employers
We also provide a survey discussing relevant state and local laws that have been enacted as of the date of this publication.
Share this content