Employment screening

Sometimes you hear people complain about the use of pre-employment credit checks as part of the hiring process. They say, “My bad credit shouldn’t be an issue in whether I can do the job. I’m being discriminated against.” Are they right?

Kansas City Star business columnist Diane Stafford takes up that issue in her recent column titled: Credit checks a legal part of pre-employment investigations Her bottom line is that “credit checks are a legal and in some cases appropriate part of pre-employment investigations. And there’s only a glimmer of a chance that credit checks might be considered discriminatory.”

In most cases, you won’t decide not to hire a person based on their credit history per se. You’ll make the decision based on fitness for a particular job or because the credit check points to other issues.

Obviously a person’s credit history has a greater bearing on your decision to hire for specific positions. You’ll pay more attention to it in cases where people will have access to money or where judgment is a factor. You’ll pay less attention if you’re hiring a receptionist.

But in both cases, you want to use the credit history as an indicator of areas to check further, […]