Senator Elizabeth Warren (D-MA) recently introduced the Equal Employment for All Act, which would stop employers from requiring job applicants to share their credit histories. According to a press release from Warren’s office, “It was previously thought that credit history may provide insight into an individual’s character, but research has shown that an individual’s credit rating has little to no correlation with his or her ability to be successful in the workplace.”
The legislation, which is cosponsored by Senators Richard Blumenthal, Sherrod Brown, Patrick Leahy, Edward Markey, Jeanne Shaheen, and Sheldon Whitehouse, has been endorsed by 40+ organizations. According to an article in the Washington Post that cited a survey by the Society of Human Resource Management, “Forty-seven percent of employers use credit checks in their hiring decisions.” A think tank study found that “one in 10 [unemployed Americans] had been told they would not be hired because of their credit.”
The Post notes that 10 states ban credit checks on prospective employees.