Says Credit Checks for Jobs Form of Discrimination
COLUMBUS -State Representative Alicia Reece (D-Cincinnati) today announced that she wants credit checks for employment banned in Ohio. She recently introduced a bill to prohibit employers from using a credit report to make decisions regarding who to hire, fire, or promote. House Bill 131 would prevent employers from using a credit report to make decisions directly or indirectly related to employment.
Credit checks for employment are on the rise according to a recent survey by the Society for Human Resource Management. According to the survey, nineteen percent of employers of employers used a credit check for employment in 1996. In 2009, sixty percent of employers used a credit check.
"Credit checks were initially only preformed for positions in which employees have access to private information," Rep. Reece said. "They are now performed for many entry-level positions."
Many employers hiring cashiers and waitresses now require credit checks.
"Employers are asking for a credit check for positions in which a person's credit rating is irrelevant," Rep. Reece continued. "This is a form of discrimination against people that have a bad credit rating. We need to eliminate credit checks for employment because many Ohioans have seen their credit rating severely damaged in the recent economic recession and they deserve to a fair chance to gain employment."
Five states currently have a similar law: Washington, Hawaii, Oregon, Illinois, and Maryland. Sixteen other states are considering similar legislation this legislative session.
The bill notably contains an exemption if the position of employment is a supervisory, managerial, professional, or executive position at a financial institution. This exemption is included in many of the versions drafted in other states this session.
The bill had its first hearing in the House Commerce & Labor Committee this week. It now awaits a second hearing.
Rep. Alicia Reece represents the 33rd House District. The district includes a large part of Cincinnati, as well as Deer Park, Elmwood, Golf Manor, Norwood, Silverton, St. Bernard and parts of Columbia, Springfield, and Sycamore Townships.
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