Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Report News, Tips & Advice « Credit Reports > Credit Report News > Rights For Workers Group All Set To Oppose Pre-Employment Credit Checks

Rights For Workers Group All Set To Oppose Pre-Employment Credit Checks

By Faye Mergel
Published: Sunday, January 12th, 2014

Advocacy Organizations dealing with the rights of workers consider credit checks on prospective employees a breach of basic human rights and as such are considering a move to have it outlawed in the coming times. Many cases are present where qualified people applying for jobs had to submit to credit checks in order to be eligible. While their number is still low, the advocacy groups fear that this trend may increase in the coming times if something doesn’t happen today to curb its spread. Almost 47% employers in the US seek credit checks as a prerequisite for landing jobs and this surely is not a small figure.

New hires applying for specific positions have to consent going for checking of their credit history and apparently, the rights groups are not happy about the situation. Recently, coalition involving 50 such advocacy groups sent letters to Senate members urging them on for cosponsoring a bill Senator Elizabeth Warren put forward. The proposed Act named ‘Equal Employment for all’, asks for doing away with credit check requirements related to promotion and hiring of applicants related to various positions.

Signers argue that are less than buoyant economy is already taking a toll on the job seekers and adding to the woes is the challenge, which sadly is less in discussion than required. They are obviously indicating towards the credit check employment conditions from some employers. According to the argument, this kind of practice is a complete discrimination against people who are unemployed for a long time besides having disparate impact on disabled and colored people. Overall, it seems like a blatant and unwarranted invasion in the personal lives of job seekers.

According to the advocacy groups, the problem related to credit checks is quite serious than what most are letting on. Almost 1 out of 4 people who are unemployed and belong to middle or low-income households having credit card debts had to undergo credit checks as a condition for landing jobs for which they applied. During the great recession, 13M+ Americans lost their jobs and many more are sitting unemployed today. Naturally, their credit situation is less than stellar and almost 1 out of 7 jobseekers have been told that they will not get employment just because of their poor credit history.

Worker Advocacy Group has taken on the cudgels on behalf of these people. If they are to have their say, the situation is going to change in the coming times towards better with employers doing away with this limiting clause from their eligibility criteria completely.

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment