EEOC Cautions Against Use of Credit Checks To Screen Job Applicants

In March, the Equal Employment Opportunity Commission released a legal opinion letter on its website cautioning that the use of credit checks by employers to screen job applicants could be unlawful under federal discrimination laws, if the use of credit checks results in a disproportionate exclusion of women or minority candidates for consideration of employment. The use of credit checks would only be permissible under those circumstances if the employer is able to demonstrate that the credit check process is needed for the employer to operate safely and efficiently. But, as the opinion letter also points out, at least one EEOC attorney has already testified that credit checks have not been shown to be a valid measure of job performance.

A link to the opinion letter can be found here: http://www.eeoc.gov/eeoc/foia/letters/2010/titlevii-employer-creditck.html