The Society for Human Resource Management (SHRM) told the EEOC that implementing the Equal Employment for All Act could be detrimental to employers and their companies who would not be able to check the credit histories of potential hires. Many companies only conduct credit background checks in the final phases of a new hire.

“SHRM believes the ability to obtain reliable and accurate job performance information about prospective employees has a direct impact on critical business concerns such as quality, workplace safety and customer satisfaction,” Christine Walters, a human resource professional and lawyer.

A recent SHRM survey showed that:

  • Credit checks on all job candidates are the exception — not the rule.
  • Many organizations do not conduct credit checks at all.
  • The use of credit background checks has not increased in the last six years.
  • Employers generally conduct credit checks only for positions for which they are relevant, such as positions with financial responsibility or those with access to confidential information.
  • Employers overwhelmingly use credit checks at the end of the hiring process, not to screen out applicants up front.
  • Employers regularly go beyond current law requirements and allow candidates to explain their credit history.

    • SHRM