Is It Morally Right For New Employers To Check Your Credit?

At a time when unemployment is near 10%, employers are becoming even more selective about hiring new employees. Employers are subjecting new employees to credit checks before hiring them. They are using these credit checks as a way of determining an employee’s dependability and reliability. Credit scores are being used as a test of trustworthiness and character. The question that this begs, Is it morally right to put all new employees through a credit check?

The belief is that employees with financial issues are more likely to steal from the company or clients. They are deemed as less honest and trustworthy. Employers are also trying to protect themselves from lawsuits. They want to prove that they did everything possible to prevent any corruption or wrongdoing.

In my opinion this is another unnecessary hoop that employers are making employees jump through. Over 40% of companies are doing credit checks on new hires. Credit reports are being using to weed out new employees. This couldn’t be happening at a worse time. Many individuals have seen their credit scores plummet due to the bad economy. Millions of Americans are behind on mortgage payments, auto loan payments, student loans, and credit card payments.

My problem is that employers are doing this checks regardless of whether or not it has any connection to the job. Running an individual’s credit makes sense for many finance industry jobs, government jobs, and any jobs that require you to deal with monetary transactions. It is not however necessary for most jobs. Should a truck driver or a factory worker be subjected to a credit check? What about an IT professional or human resources professional?

The people hurt the most by this requirement are those that need jobs the most. People that have lost their jobs over the last year or two are the most likely to have fallen behind on their bills. Therefore unemployed people have a tough time finding employment which perpetuates a cycle of keeping the unemployed out of work.

What do you think about this issue?

Photo by: TrinityCreditServices