No More Credit Score: The Effect of Employer Credit Check Bans on Employment

The use of credit information for employment screening has increased significantly over the last two decades , and industry surveys indicate that such screening is used by 47 percent of employers. This screening tool has come under fi re, though, by politicians and community groups that claim it unfairly penalizes minority and other vulnerable applicants. In response to these fears, a number of state governments have passed laws restricting the use of credit information by employers. The first of these laws was passed in Washington in 2007, and as of this writing, eleven states and three municipalities have such laws on the books. Thirty-one other states have considered similar laws.