Citing “basic fairness,” Democratic Senator Elizabeth Warren introduced a bill Tuesday that would ban employers from using an applicant’s credit history in the hiring process.
“This is about basic fairness — let people compete on the merits, not on whether they already have enough money to pay all their bills,” Warren said of the Equal Employment for All Act she authored, along with six other Democratic senators.
“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. “Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs.”
According to the press release on Warren’s website, more than 40 organizations, including the Service Employees International Union, NAACP, National Council of La Raza, National Gay and Lesbian Task Force Action Fund, and the National Organization for Women, support the new legislation, which “is based on H.R. 645…introduced by Congressman Steve Cohen in 2011.”
“It was previously thought that credit history may provide insight into an individual’s character, but research has shown that an individual’s credit rating has little to no correlation with his or her ability to be successful in the workplace,” Warren said.
The exception to the new rule would be for those employees who required security clearances.
Take a look at the “Fact Sheet for the Equal Employment For All Act of 2013,” and share your thoughts by taking the poll: