Jobseekers worried that bad credit scores may show up during pre-employment background checks and hurt their chances of finding work may not have to worry much longer.
A new bill introduced in the House of Representatives – The ‘Equal Employment for All Act’ (H.R. 3149) – would amend the Fair Credit Reporting Act (FCRA) to prohibit the use of consumer credit checks against prospective and current employees during hiring or firing processes, thus preventing employers from using credit reports as part of pre-employment background checks.
According to a press release from the offices of U.S. Congressman Luis V. Gutierrez (D-IL), the act would give “credit-challenged” citizens – such as students, recent college graduates, low-income families, senior citizens, and minorities – the opportunity to begin rebuilding their credit history by obtaining a job. Many jobseekers are turned down after background checks due to poor credit because employers “have erroneously linked credit scores to potential job performance.”
H.R. 3149 specifically states that “a person, including a prospective employer or current employer, may not use a consumer report or investigative consumer report, or cause a consumer report or investigative consumer report to be procured, with respect to any consumer where any information contained in the report bears on the consumer's creditworthiness, credit standing, or credit capacity.”
This prohibition applies even if the jobseeker consents to or otherwise authorizes the use of a background check for employment purposes. However, there are exceptions, and employers may use credit reports during background checks in the following situations:
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When a person applies for, or currently holds, employment that requires national security or FDIC clearance.
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When a person applies for, or currently holds, employment with a State or local government agency which requires such a report.
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When a person applies for, or currently holds, a supervisory, managerial, professional, or executive position at a financial institution.
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When otherwise required by law.
However, the exceptions would have no effect upon the other requirements in regards to disclosure and notification to a jobseeker when using a credit report for pre-employment background checks or for making an adverse action – such as rescinding an offer of employment – against the jobseeker.
Even though credit reports may be excluded from background checks due to the ‘Equal Employment for All Act,’ jobseekers are still advised to keep their personal information current, accurate, and secure. An error or inaccuracy found on a background check – such as a arrest or conviction put on one's criminal record because of an honest mitake or due to identity theft – can still cost a jobseeker employment.
While most background check companies focus on employers, MyBackgroundCheck.com is a leading provider of consumer requested and applicant supplied “personal” background checks. By ordering self background checks, jobseekers can take control of their personal information and share the data with whomever they wish, including potential employers.
To learn more about how personal background checks can help jobseekers, visit www.mybackgroundcheck.com, email info@mybackgroundcheck.com, or call 1-800-503-2364. To follow MyBackgroundCheck.com on Twitter, visit www.twitter.com/MybackgroundChk.
tahearn@mybackgroundcheck.com
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On August 11th, ClarksvilleOnline, published a commentary from a concerned parent about a 120 day sentence a teacher received for raping a student from Northeast High School in Clarksville, Tennessee. If thorough background checks had been conducted by his three former schools, he would not have been working with kids.
The teacher had over a dozen reported rapes from three other schools and a prior conviction. Similar incidents are in the headlines almost daily, which is a clear indication that schools are not taking background checks seriously when hiring teachers.
Background checks are necessary in making accurate and effective hiring decisions, particularly with teachers, day care providers, coaches, counselors, or anyone working with kids.
Sex offenders are released from prisons every day and integrated into our society. Many of these offenders serve less time than non-violent criminals.
If you haven’t inquired about background checks at your schools and other youth organizations, here are some key background check searches that you should ask about:
- Social Security Trace – provides information on names used and where the person lived
- State and Federal Criminal History – searches all state and federal criminal records
- County Criminal Search – pulls county court records from the counties where the person lived
- Sex Offender Search – searches state and federal sex offender records
- Past-employment Verifications – contacts former employers directly
For more information and resources on background checks that will help protect you and your children, please visit http://www.pre-employ.com/ or www.mybackgroundcheck.com.
*We welcome relevant comments and questions from consumers, experts, and human resources professionals. Please do not submit comments with advertisements as they will not be posted publicly. Thanks for visiting our blog!
A story featured in the L.A. Times (July 16, 2008) should be a wake up call to all employers who do not conduct background checks on current employees.
Sixteen employees were suspended from Martin Luther King Jr. – Harbor hospital when county officials found they had serious criminal histories. The criminal backgrounds were discovered last year, but the employees were not disciplined or relieved from duty by the hospital.
This leaves a serious question to be answered by employers, particularly those who have employees working closely with the community. Background checks need to be conducted before hire and periodically throughout employment. Failure to do so could cause harm to other employees and customers…and the bad publicity could result in the demise of your organization.
Click here to read our full article on current background check issues...
*We welcome relevant comments and questions from consumers, experts, and human resources professionals. Please do not submit comments with advertisements as they will not be posted publicly. Thanks for visiting our blog!