subject: Illinois Legislation Addresses Employment And Credit Reports [print this page] At a time when unemployment is up, the job market is reaching unparalleled levels of competition. There are frequently several qualified candidates for each open position, as well as some overqualified. For this reason, many employers are basing potential employment on credit reports - or at least using it as a qualifying factor. Based on a recent survey by the Society for Human Resources, up to 60% of employers are guilty of this practice - nearly double the 35% using employment credit checks in 2003.
Is Bad Credit Bad for Employment?
For a potential employer, basing employment on credit reports is an easy way to disqualify some applicants from the hiring pool, although it is against the law to discriminate against someone based upon a previous bankruptcy. But for a potential employee, it may bring about questions or relevance to the job opening, as well as an invasion of privacy.
The Catch 22 is this - many jobseekers are unemployed and are behind on bills. Some have filed for bankruptcy due to unemployment. If these factors are disclosed to a potential employer and used to disqualify them for a potential job opening, they have no chance of catching up.
However, for employers pulling credit checks in Illinois, things are about to change.
New Legislation in Illinois and Three Other States
Three states - Hawaii, Washington and Hawaii - now have laws in place pertaining to employment and credit reports and Illinois is well on its way, waiting for approval from the state's governor. These laws bar potential employers from requesting credit information from applicants unless they can prove that it pertains to the job function. While there are already laws in place to prevent discrimination based on bankruptcy or poor credit, these new laws will ensure that companies are not even given the opportunity to discriminate - by denying them access to the information in the first place.
Basing employment on credit reports, while illegal, has typically been gray area. However, thanks to new legislation, credit checks in Illinois and other states will now be on a strictly necessary basis - which has job seekers in those areas breathing just a little bit easier. If you are concerned about how poor credit or a past bankruptcy might affect your job search, contact a qualified professional in your area.
