The Examiner reports that D.C. is considering banning employers from checking the credit of job applicants, with some exceptions.
District employers would be barred from using a job applicant’s credit history as a factor in determining whether to hire that person under legislation now before the D.C. Council.
D.C. residents, 12 percent of whom are unemployed, “need a job; they don’t need a credit check,” Ward 1 Councilman Jim Graham said Tuesday. A recent Society for Human Resource Management survey found 47 percent of employers perform credit checks on selected job candidates while 13 percent check all candidates — most often applicants for jobs involving access to money.
The District joins at least a dozen states to eye a ban on the practice. […]
The bill prohibits a prospective or current employer from using a consumer report “where any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity for employment purposes.” There are a handful of exemptions — applicants for managerial, professional or executive positions with a financial institution, for example. […]
The SHRM survey found that current outstanding judgments, like a lawsuit, accounts in collection, bankruptcy, and a high debt-to-income ratio are most likely to work against a job candidate. The checks often delve seven or more years into a person’s credit history.