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HARRISBURG, March 23 – State Rep. Babette Josephs, D-Phila., has introduced a bill that would eliminate credit reports from being used as a basis for hiring decisions. According to Josephs, a survey by the Society for Human Resource Management found that about 43 percent of U.S. employers check a job applicant's credit history, where they screen for overdue payments on anything from mortgages to student loans. "Such hiring practices, while legal, are not a true indicator of an applicant's worth as an employee," Josephs said. "In reality, this is just another obstacle for the unemployed, which unfortunately is a rapidly growing population. The practice only continues to perpetuate a downward spiral for job seekers eager for good employment and the opportunity to pay off their debts."Such credit checks also have the potential to be discriminatory since studies have shown that the percentage of 'bad' credit reports varies significantly between different races and ethnicities," she said.
The bill (H.B. 2366) has been referred to the House State Government Committee.
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