Switch to ADA Accessible Theme
Close Menu
Robert S. Norell, P.A.
~ Schedule an Evaluation Today! / No Recovery No Fee ~
Home > Blog > Labor and Employment > New Legislative Proposal Targets Discrimination Based On Credit History

New Legislative Proposal Targets Discrimination Based On Credit History

Laws regarding employment discrimination are constantly changing and a new proposal was recently introduced in Congress on September 15, 2015. Senator Elizabeth Warren from Massachusetts and Representative Steve Cohen from Tennessee introduced legislation called the Equal Employment for All Act. While recent proposals across the country have mostly involved discrimination based LGBT factors, this one tackles a new issue: discrimination based on your past credit history.

During the hiring process, many employers ask for permission to run an applicant’s credit to review their score and past payment history. Applicants often agree to a credit check because they believe that is the only option if they want a chance to be chosen for the position. However, in many situations, an employer will use a less-than-perfect credit history to eliminate particular job candidates.

Arguments Against Credit Discrimination

Hundreds of thousands of people unexpectedly lost their jobs as a result of the Great Recession and were unable to find new adequate work immediately. As unemployment rates soared, hard-working individuals were suddenly struggling to pay the bills and cover expenses through no fault of their own. Many households incurred delinquencies, lost their homes to foreclosure, or had to file bankruptcy to regain control of their finances.

In addition, many individuals decided to remain in higher education programs or return to school to make themselves more marketable in the dismal job market. This often led to unmanageable student loan liability especially if an individual could not find a job following graduation. All of the factors and more led to plenty of well-qualified people watching their credit scores quickly decline.

Supporters of anti-discrimination laws regarding credit scores point to the fact that there is no proven correlation between an individual’s credit history and their ability to perform well at a particular job. Additionally, credit reports may have many inaccuracies and, therefore, may not be a valid portrayal of a person’s financial record. Individuals who mostly use cash in an effort to avoid debt may also have lower scores due to a lack of credit establishment. Legislators are now trying to help individuals with potentially lower credit scores get back into the workforce despite economic disadvantages. The bill was presented to the Committee on Health, Education, and Labor, which will decide whether it is passed on to the House of Representatives for a vote.

Contact A Plantation, Florida Wage And Employment Attorney With Questions About a Legal Claim

If you believe you have been mistreated at your place of employment, it never hurts to consult with an experienced Florida employment lawyer who fully understands both Florida and federal wage and discrimination laws. At the Law Office of Robert S. Norell, P.A., we will evaluate your case to determine whether any violations of law occurred. If your rights have been violated, we will advocate for you to obtain the compensation you deserve for back pay and other damages you suffered. We are passionate about defending the rights of employees in and around Plantation, so please call for a consultation today at 954-617-6017.

Facebook Twitter LinkedIn