Warren Bill Would Ban Credit Score Checks In Employment Decisions

Employers would not be able to use a potential employee’s credit history as a factor in the hiring process under legislation proposed by Sen. Elizabeth Warren (D-Mass.). The Equal Employment for All Act would also block companies from using credit checks in decisions regarding current employees. “A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual’s character or abilities,” Warren said. “It makes no sense to make it harder for people to get jobs because of a system of credit reporting that has no correlation with job performance and that can be riddled with inaccuracies.” However, under the proposed law credit scores could still be used as a factor for  jobs with a national security clearance.