Massachusetts employers may have to adjust their hiring process.
Credit Checks Targeted for Ban
The Massachusetts Senate is considering a bill that would strip business owners of some control over their hiring process.
S. 2394, sponsored by Sen. Michael Barrett, vice chairman of the Joint Committee on Labor and Workforce Development, would prohibit employers from performing credit checks on job candidates in order to make hiring decisions. The bill would also ban the practice of requesting a credit report for current employees in order to make decisions about firing or promotions.
There would be exceptions to the ban, such as cases when a credit report is required by federal or state law, when hiring for an executive or managerial role at a financial institution, and when hiring for a job that requires national security clearance. Positions that involve significant financial responsibility would also be exempt from the ban, but the job applicant would have to give written consent for the credit check and must be allowed to defend or dispute the report’s findings.
However, NFIB and other business groups have pointed out that there are valid reasons employers may want to perform credit checks before extending an employment offer. Business owners must feel secure that the workers they hire will keep customers’ money and information secure, and a credit report also provides an indication of whether someone is responsible and wise with money. Even if the credit report isn’t the deciding factor in an employment decision, taking hiring decisions and tools away from private employers is harmful to small business owners.
