What does the laws say regarding employers doing credit checks on prospective emloyees? I question the morality of this. Maybe it's legal, but it's immoral. After all what does credit history have to do with job performance. Then again I'd be able to pay some of my debts if I was able to get a better wage. The EOE act should have something added regarding credit discrimination. I can understand criminal background checks but, come on.
You have to give written permission to a prospective employer to pull your credit reports. I went to a Business Law continuing ed course this past week. The course instructor (a law professor) said there were studies that demonstrated a high correlation between individuals with collection hassles to problems of theft in the workplace. He didn't cite the source of this information. He did mention an article he saw citing the head of loss prevention at Target Stores who said they suffer much more losses from employee theft than from shoplifting. Staff steal inventory to sell, etc. We were not told to use credit scores, but to make judgements based on presence of problems found on the credit reports. Criminal background checks can be pulled solely from public records. The prof told us an employer could search public databases without getting the applicants' permission. However, if a third party firm was used, written permission must be obtained. Maybe there is some relationship as the prof cited. However, I work in business without inventory or cash, and I too fail to see why our HR folks should be pulling credit reports on applicants. Just my opinion, but I'm unanimous in it.
Some small business owners are doing credit checks and looking for medical collections. The theory being if there are a number of them you may have an applicant with chronic health issues and you'll run the risk of driving up your insurance premiums.
This whole thing is a 2 edged sword. If someone has trouble paying their bills and you don't give them a job because of that, they still cannot pay their bills. DUH. These could have been medical bills. These could have occurred due to unemployment. It could have happened because they were young and didn't understand the implications, but have learned it the hard way! Criminal background checks.... So, noone hires an ex-con. And then the country wonders why there is a problem with recidivism!!! Before everyone goes blasting the criminal one.... may I submit: * There has been a large number of convicted rapists now being freed because DNA proves that they could NOT have been the rapist. * Many poor have had to accept plea bargains even though they did not commit a crime. The PD office convinced them that they were better off with a short sentence than risking a huge sentence. Finally, the worst corporate crimes in history were not committed by ex-con's but greedy CEOs!!!!
Years ago I applied at First Gibraltar, now B of A. Had to agree to let them pull a credit report, even though I wasn't going to handle cash, nor have any access to it, I would just be moving money around on paper. My report was bad due to recent divorce. The HR was very nice, I was upfront. "Look its going to be ugly, lets talk again when you see it" brought my divorce papers, we went over everything, she felt sorry for me! I got the job. The only thing I can say, don't let them pull the CR until you have someone really interested in hiring you. Too early, and poof its over. They really like you, there's a chance to get around it.
Now that I have a few responses, I'll fill everyone in. I have been employed at a casino owned by a major casino type corporation for the past 1 1/2 years. Near the end of October a position came open that required handling money, mostly on paper as figures but partly as coins. After one month on the new position I was called to HR. After reporting to HR I was told I am being given the opportunity to take my old position back or termination. (How's that for a hidden ultimatum?) I asked why and was told they needed no reason. Unsatisfied with that I went to our GM and was told about their policy of credit checks and background checks for money handling jobs. I explained the credit problems were as a result of a divorce. He said he understood. I was also told to give it a couple of months and return to see him and he would go to batt for me and give me a chance at the job. Was it a polite type of brush off? I also do not recall signing anything giving them company permission to do a credit report check. I suppose it could be hidden in a double-talk type of writing. Shall I ask for the signed document and see if they can prove they had permission? If they had no permission should I nail them with a lawsuit? Should I negotiate for the position? I'm afraid that if I negotiate for the promotion they'd make some other excuse to term me.
You may need to check and see if a credit check is a requirement from the Casino Control Commission in your state. One of my old college roommates got into the gaming industry in the mid 70's and is now a casino manager in Ms. He's worked in casinos in both Nevada and Ms. and he said as he went up through the ranks there was always a credit check involved. The reason he was given was state law required it. The last promotion he got, he had to turn over his past 2 years worth of bank statements and income tax returns.
Are you talking about the Beau Rivage? I have worked in several casinos in MS and the Beau Rivage is the only one that requires a credit check. I was a cocktail waitress and they turned me down even for that posistion b/c of credit, shoot, cocktail waitresses do not even handle any kind of money. We are not even required to carry an ABC license or a gaming license anymore but they still require good credit for the posistion.
Hard question, I say, since it's your current employer. However, if you are feeling like they are looking for termination excuses, it may be good to have a plan. Well, it's always good to have another plan, I say, who knows what tomorrow will ever bring? If they pulled your report for employment, it requires specific written permission. If they then made an employment decision based on that report pulled they are required to give you notice. It's a hard one too, because a lot of times we think or suspect or just know the reason we were denied something, but no one, in your case your employer, will fess up to the reason and instead say something like you experienced, "we need no reason." I'm thinking you need a job that values you, your contributions, and the job you do. Sorry to say, there doesn't seem to be many of those around. Sassy
I think the situation is, the CRA's want to sell their "services" to more and more businesses. That's how they make money. So we will be dealing with this in every conceivable area of our lives. The good side of it is, they are being called on many of their inconsistencies and sued for their errors. I think we can expect to see more and more class actions against them. They are so sloppy about their record keeping, they are inviting the lawsuits.
Employee Best Practices What did you sign when you were employed? Ask to view and possibly get a copy of it. Your signature is required on a form that specifically states their intention to conduct a background/credit check. I read the applicable section of the FCRA regarding credit checks and employment. http://www.ftc.gov/os/statutes/fcra.htm#604 Best Practices for Any Employee: 1. Keep abreast of laws in your state regarding background checks, termination, unemployment and final pay upon termination. 2. Regularly ask to review the contents of your personnel file. (I believe state laws vary on access) 3. Keep your own "paper trail" - copies of any and all correspondence; promotional information, commendations, customer satisfaction reports, etc. - at home. **Don't keep things you may need later for legal purposes in your desk at work. Your employer can confiscate them and say they never existed. 4. Regularly pull your credit reports(s) to see who is snooping in your file. 5. Never be intimidated into signing anything during employment or at termination without getting the advice of an attorney.
Re: Employee Best Practices tnobles, My friend is in Tunica. He got into casino management with Harrah's in Reno and then Laughlin and has hada bunch of stops in between.
Have you checked your credit reports to see if an inquiry WAS made? It is possible that if you have judgments on record or BK, no credit report was required. If you like your job, and have a opportunity for a promotion in the future,and you KNOW you have credit problems that might interfere with your obtaining other employment, why not concentrate on clearing your credit, instead of biting the hand that feeds you?
Re: Employee Best Practices Oh ok, I am sorry, I am not familiar w/those casino's, only the ones on the coast.
Re: Employee Best Practices I'm going to have to take an unpopular stand on this one. I can understand employers of businesses that deal with cash or expensive merchandise wanting to ensure that they minimize the likelyhood of theft. My ex brother in law was the smoothest talking person I have ever met. He was also a con man. He talked his way into several management positions and managed to steal many thousands of dollars from his employers. A credit report or background check would have saved them a lot of money. My credit report was pulled for the job I currently hold, but was not held against me because all my collections were medical and were due to my ex-wife not forwarding me bills that insurance didn't cover on my daughter. I would like to think most employers are smart enough to get both sides of a story. If a credit report contained medical collections, I wouldn't be too concerned. If it contained several lates, or reposessions I too would be concerned about putting this person in a position of handling funds that could be easily diverted to their pocket. Gib
Privacy is going out the window fast.. That is, unless you live in the wilds of Alaska and your name is Hermit ;-)
After being on disability for a couple of years I started looking for work and several place pulled my credit report. Each company that did so turned me down. The only things that were on the report were medical collections. (over 30 at one point). I don't have any idea if it was that I had that many hospital stays or whether it was just collections in general.
Hi KGrant, Go to this site: http://www.havenswillis.com/faircred.html It has a lot of info. about employers responsibilities and credit reports. Credit discrimination issues are already covered via Equal Credit Opportunity Act, at: http://www4.law.cornell.edu/uscode/15/ch41.html Chose #4. Welcome to the board.
Many employers use the credit information they obtain as the sole factor in hiring. My daughter is a college student and was turned down for a summer job with Neiman Marcus. She had a charge-off/collection on her report from a plumbing company. The transaction for the plumbing work was done when she was 14. As with most credit related activities today, there are innocent individuals being disenfranchised and monetarily damaged because of the poor quality control inherent in credit checking.
