In a previous blog entry, we wrote that "Rejecting Job Applicants Because of Their Credit Report May Constitute Illegal Discrimination." We are happy to report that many state senators and legislators are now seeking to make the use of credit checks for job applicants illegal. See "States May Ban Credit Checks on Job Applicants" published in The Miami Herald on March 1, 2010. Indeed, in the midst of the recession that has gripped the nation (and the world for that matter), people are losing their jobs and the lack of available jobs naturally leads to them getting behind in paying their bills, which in turn makes their credit scores go down. Then, employers refuse to hire them because of their credit score. It becomes a vicious circle. However, the fact that a prospective employee has a poor credit report is simply not an indicator of whether the employee can do the job or whether he or she will perform well.
The discriminatory aspect of this issue is that studies show that minorities generally have worse credit reports than non-minorities. Therefore, when a company has a practice of rejecting applicants because of their credit reports, then that practice, which has a disparate impact on minorities, may be a violation of Title VII of the Civil Rights Act of 1964. Unless the policy of rejecting job applicants because of their credit report is related to the job and consistent with business necessity, the practice may constitute illegal discrimination.
If you have questions regarding the use of credit checks by employer or other employment laws, contact the Law Offices of Santiago J. Padilla, P.A. as soon as possible. Based in Miami, Florida, we represent employers and employees throughout South Florida in employment cases. To set up a free initial consultation, you can contact us through the Internet or call us at (305) 358-1949.
