Employer Credit-History Checks and Criminal Record Checks of Job Applicants for Hiring Decisions: The Illegality under Title VII Disparate Impact Doctrine

Click PDF icon to download

The legality under Title VII of employer use of credit-history checks as a job criterion or investigative tool is a question best answered in several parts. First, are employee credit-history checks a sufficiently widespread practice to merit the issuance of written guidance by the EEOC? Second, are employee credit-history checks an employment practice that has a disproportionately negative impact on African-Americans (and other protected groups as well)? Third, are employee credit-history checks a practice that is job-related and consistent with business necessity? Fourth, and perhaps most broadly, would barring the use of employee credit-history information in determining employment suitability comport with the goals and purposes of Title VII? Each question will be answered in turn...