States Limiting the Use of Credit Reports
When it comes to the recent trend of states limiting their use of credit reports as far as employment screening is concerned, there are vocal parties on both sides of the aisle. Some feel that the 11 states that have made this decision already have chosen correctly. There are others who believe otherwise.
That’s why it is important to strike the proper balance between credit checks that are fair to the process and credit checks that are relevant to the process. If a business has sound reason to perform such checks, they should certainly be able to do so. Washington, Vermont, Oregon, Nevada, Maryland, Illinois, Hawaii, Delaware, Connecticut, Colorado, and California are the states that are currently rolling back their regulations.
What are the Limitations?
These limits aren’t far-reaching as some might think, though. They come with exceptions that need to be considered because they are practical. If an employee is going to have a job where they are required to handle expensive goods and/or cash on a daily basis, this trend is not going to play into the employer’s decision.
They must know more about the credit reports of their chosen employees. The same goes for any employee who is going to be assigned to a job that provides them with access to the financial information of others. A background check is absolutely pivotal in these sorts of instances.
If a credit check is believed to be relevant to the job that is being posted, the employer has every right to conduct one. While some might allow themselves to believe that these new trends have eliminated the credit check from the equation entirely, nothing could actually be further from the truth.
Learn More About Legislative Practices From TruDiligence
For more information about these legislative practices and how they will affect your company, be sure to contact TruDiligence.