“Job seekers may have to be concerned about both their resume and credit report” |
| Job seekers may have to be concerned about both their resume and credit report Posted: 27 Oct 2010 04:22 PM PDT Job applicants have to pore over their resumes and cover letters because studies show that hiring managers have little tolerance for mistakes. And now, there's something else for an applicant to worry about — her credit profile. At the same time the lagging economy is adversely affecting people's personal finances employers are scrutinizing the way people pay their bills as part of their screening process. The US Equal Employment Opportunity Commission is so concerned about this trend that it held a hearing recently. The Fair Credit Reporting Act allows employers to pull credit reports on current employees and job applicants as long as certain disclosures are made. An employer must get written authorization to view a report, and then must give the worker or applicant a copy along with a written description of the person's rights before taking any adverse action based on what is in the document. The Society for Human Resource Management says job applicants shouldn't worry too much. Although about 60 percent of organizations use credit checks when selecting employees for some jobs, only 13 percent conduct credit checks on all job candidates. "Credit check results are one important component of the hiring decision but are not typically the overriding factor," Christine Walters, a human resource professional and lawyer, testified. While some employers may review credit histories thoughtfully, others may automatically screen out all applicants with a weak credit record, testified Chi Chi Wu, a staff attorney at the National Consumer Law Center. Wu fears that potential employees, especially minority applicants who are often the victims of predatory credit practices, will not be fairly judged based on their ability to perform a job. She's not alone. Eighteen states and the District of Columbia have considered legislation to restrict the use of credit reports in hiring, according to the law center. Oregon and Illinois recently enacted laws restricting the practice. Wu told the EEOC that it should prohibit or restrict the use of credit reports in the employment process. "Simply put, a worker who loses her job is likely to fall behind on paying her bills due to lack of income. With the increasing use of credit reports, this worker now finds herself shut out of the job market because she's behind on her bills." Here's the underlying question that so far has no definitive answer: Do workers with money troubles have a propensity to steal from their employers? I couldn't find any independent research that says yes. Certainly there are some jobs where it matters how an applicant handles money. Some employers are required to pull a credit report if an employee will handle cash or work in a financial services position. At least that makes sense. Nonetheless, this trend is something we should be challenging and restricting. Michelle Singletary is a columnist for The Washington Post. She can be reached at singletarym@washpost.com. © Copyright 2010 Globe Newspaper Company. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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