Hiring Again? 2012 Trends (Part 2 Of 2)

On Monday, I talked about the latest initiative by state legislatures to prevent employers from demanding that applicants provide their social media passwords. A second trend has emerged with employers, whereby an applicant's credit history and financial-related information are relied upon for hiring decisions. As with any background information, social media affords employers that same ease and speed in obtaining information about the creditworthiness and solvency of those applying for jobs.

Is that information relevant? Or, is it just another one of those categories of information that employers are obtaining because they can? That is the debate, and state legislatures are trending toward legislation that prohibits the use of credit reports for employment decisions, whether for hiring purposes or post-hire decisions.

Employers argue that an individual's credit history and financial wherewithal are relevant to particular jobs, such as bank tellers and other positions involving the handling of money. However, those on the other side, including the United States Equal Employment Opportunity Commission, argue that the use of credit histories tends to have a discriminatory impact on minorities, women, and disabled individuals, with no evidence that financial history has any correlation to one's ability to perform a job. I believe that a proper balance needs to be in place, so that, while we all want to eliminate any potential abuse and stereotyping, employers should still be able to rely on pertinent background information relating to the particular...