Credit Report – Depending on the role and responsibility of the employee
The legal use of credit reports during background investigations depends upon many factors including the role and responsibility of the employee. Conducting a credit report is illegal in many states for pre-employment purposes unless you have a permissible purpose based on the applicant position.
- Employment Credit Reports provide insight into an applicant’s credit history and identifies trade accounts, credit limits, balances and payment history.
- Illegal to use as a means to make an employment decision in CA, CO, CT, IL, MD, VT, WA, DE, HI, NV, OR.
- Some cities have also passed laws – including Chicago, NYC and additional legislation pending in several other states.
- Discriminatory and Subjective.
- Per SHRM, 47 percent of employers conduct credit on some or all applicants.
- Pending Senate Bill proposed to prohibit employers from asking applicants to disclose credit history.
For more information about a Credit Reports Search, email email@example.com, or contact us at 800-579-2911.