Proposal floated to ban employers from looking at your credit reports

Should employers be able to check up on their employee’s credit reports?

A new proposal from Massachusetts state treasurer Tim Cahill would ban the practice in the Bay State. Cahill is running for governor as an independent, and as treasurer, he is not part of the legislature; hence, he would need to get a legislative sponsor in order to advance his proposal on Beacon Hill.

I have often wondered why companies would bother checking credit for the vast majority of the people they hire. Unless the prospective employee is to be given the job of counting or guarding a vast sum of money, it seems rather pointless and a waste of time.

Cahill’s proposal would prevent employers from requesting or obtaining a credit report or history for current or prospective employees. It also would prohibit the use of credit history as part of the hiring process. There would be exceptions for jobs with financial oversight.

As many as 60% of employers run credit checks on potential new hires; much or this information is wasted, and some of it may prevent deserving workers from rebuilding their lives.

 

By Doug Beaton

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