New bill introduced would make it illegal for employers to use credit history for background investigation and employment decision

Background Investigations have changed the way employers look at candidates for employment and help with mitigating the potential losses from a negative hiring decision. At the same time through the years more and more employers have increased the level of searches being conducted and also have implemented new procedures to increase scrutiny of candidates.

From Address History/Verifications, Criminal Histories (all levels), References, Employment, Education, Civil Actions, employers have also been using Credit Reports and credit scores when making an employment decision. . As employers have become more selective in their hiring practices, candidates who have failed to secure employment, for a multitude of reasons are now fighting back.

The House Financial Services Committee has a bill pending, titled H.R. 321, with respect to the use of credit reports in background investigations process. This bill would make it illegal for employers to use credit history for employment decisions. This could be problematic for many employers who currently use credit reports as a means for a hiring decision. Some states have already implemented this practice, such as Illinois where it is now illegal to use credit reports as a means for background investigations.

To ensure that you are compliant with the state and federal laws governing background investigations, visit and stay close to the developing changes.

For an assessment of your current practices and recommendations on effective hiring practices, reach out to a representative at Alliance Worldwide Investigative Group Inc. today, at 800-579-2911.