EEOC Files Suit Regarding Credit Checks

Credit checks are becoming a discriminator in selecting job applicants.  The Equal Employment Opportunity Commision has taken notice.  The EEOC filed suit against Kaplan Higher Education Corporation.  See report.  Since 2008, Kaplan has rejected applicants based on their credit scores.  

The issue for the EEOC is that relying on credit score will adversely impact minorities.  That adverse impact coupled with a lack of a business necessity makes the lawsuit viable.  Credit score has little relevance to a persons qualifications.  It might have some relevance to character issues, but there are other ways to assess character.  So, yes, it could be an interesting lawsuit.  Here is the EEOC's news release regarding the lawsuit. 

Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.sanantonioemploymentlawblog.com/admin/trackback/235944
Comments (1) Read through and enter the discussion with the form at the end
Joel Chrsitiansen - January 13, 2011 2:05 PM

Tom, if you're interested, I recently posted an article about Oregon's recent ban on employer use of credit history information. http://portlandoregonemploymentlawyer.com/2010/12/can-oregon-employers-consider-your-credit-record/

Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.