Some job-screening tactics challenged as illegal

[TimC]

http://www4.comcast.net/articles/finance/2...llegal.Tactics/

 

WASHINGTON — Companies using criminal records or bad credit reports to screen out job applicants might run afoul of anti-discrimination laws as the government steps up scrutiny of hiring policies that can hurt blacks and Hispanics.

 

A blanket refusal to hire workers based on criminal records or credit problems can be illegal if it has a disparate impact on racial minorities, according to the Equal Employment Opportunity Commission. The agency enforces the nation's employment discrimination laws.

 

"Our sense is that the problem is snowballing because of the technology allowing these checks to be done with a fair amount of ease," said Carol Miaskoff, assistant legal counsel at the EEOC.

 

With millions of adults having criminal records — anything from underage drinking to homicide — a growing number of job seekers are having a rough time finding work. And more companies are trying to screen out people with bankruptcies, court judgments or other credit problems just as those numbers have swollen during the recession.

 

Just ask Adrienne Hudson, a single mother who says she was fired from her new job as a bus driver at First Transit in Oakland, Calif., when the company found out she had been convicted seven years earlier for welfare fraud.

 

Hudson, 44, is fighting back with a lawsuit alleging the company's hiring practice discriminates against black and Latino job seekers, who have arrest and conviction rates far greater than whites. A spokesman for First Transit said the company does not comment on pending litigation.

 

"People make mistakes," said Hudson, who is black, "but when they correct their mistake, they should not be punished again outside of the court system."

 

Justice Department statistics show that 38 percent of the U.S. prison population is black, compared with about 12 percent of the general population. In 2008, African-Americans were about six times more likely to be incarcerated than whites. The incarceration rate for Latinos was 2.3 times higher than whites.

 

If criminal histories are taken into account, the EEOC says employers must also consider the nature of the job, the seriousness of the offense and how long ago it occurred. For example, it may make sense to disqualify a bank employee with a past conviction for embezzlement, but not necessarily for a DUI.

 

Most companies tend to be more nuanced when they look at credit reports, weeding out those applicants with bad credit only if they seek senior positions or jobs dealing with money. But if the screening process weeds out more black and Hispanic applicants than whites, an employer needs to show how the credit information is related to the job.

 

About 73 percent of major employers report that they always check on applicants' criminal records, while 19 percent do so for select job candidates, according to a 2010 survey by the Society for Human Resource Management.

 

The same survey found that almost half of major companies conduct credit checks for some job candidates, such as those who would be in a position of financial trust. Another 13 percent perform credit checks for all potential workers.

 

Last fall, the EEOC sent a strong message to employers when it filed a class-action lawsuit against Freeman Companies, a Dallas-based events planning firm, alleging the company discriminated against blacks, Hispanics and males by rejecting job seekers based on credit history and criminal records. Freeman has denied the charges.

 

The growth of online databases and a multimillion dollar background check industry have made it easy for employers to find out reams of information about potential hires. Companies see the checks as another way to Josh Gordon out unsavory candidates, keep a safe work environment and prevent negligent hiring claims.

 

"Past indiscretions may be an indicator of future behavior, especially in the criminal context," said Pamela Devata, a Chicago employment lawyer who has represented companies trying to comply with EEOC's requirements.

 

Devata said employers nationwide have seen the EEOC become more active in investigating employer hiring practices. The scrutiny has caused many companies to reevaluate their screening process and move to a case-by-case standard.

 

Ariela Migdal, an attorney with the American Civil Liberties Union's Women's Rights Project in New York, said a person might have a blemish that has nothing to do with the job he or she is seeking. And records sometimes are inaccurate or not updated to reflect that someone arrested later had charges dropped or a conviction overturned or expunged, she said.

 

"Somebody with an old conviction that has been rehabilitated doesn't have any greater likelihood of committing a crime, so its irrational to use that against them," Migdal said.

 

Ron Heintzman, president of the Amalgamated Transit Union, said he's seen dozens of job candidates disqualified "for reasons that were just ridiculous." His union, with 13,000 members in First Transit, is paying for the lawsuit that Hudson filed last month against the company which operates bus service in Oakland and several other major cities.

 

In Hudson's case, she was fired after just two days on the job as a bus driver because of a 7-year-old felony welfare fraud conviction. The conviction was later dismissed under California law, but her lawsuit, filed in federal court last month, claims the company has a policy to deny employment no matter how old the conviction, the applicant's prior work history or whether it is related to the job.

[TimC]

Sorry America, if you make unwise personal financial decisions and are carrying a boatload of debt, you are almost guaranteed to make unwise business decisions as well. I don't need you working with me.

 

As for the criminal convictions...well, if customers stole as frequently as employees do from your business, you wouldn't last an hour.

[Duchess Jack]

This is silly as it has zero to do with race. This has to do with bring responsible and making good desicions and you can't fault a company looking for that in their employees

[WaterMan]

Sorry America, if you make unwise personal financial decisions and are carrying a boatload of debt, you are almost guaranteed to make unwise business decisions as well. I don't need you working with me.

 

That's always the case right? It could never be that the person was making payments on a credit card or mortgage on time every month and was laid off thus getting horrible credit. It has to be because they make bad decisions financially.

[dmarc117]

That's always the case right? It could never be that the person was making payments on a credit card or mortgage on time every month and was laid off thus getting horrible credit. It has to be because they make bad decisions financially.

 

 

to some, having a cc balance is bad decision making.

[TimC]

That's always the case right? It could never be that the person was making payments on a credit card or mortgage on time every month and was laid off thus getting horrible credit. It has to be because they make bad decisions financially.

 

Yes, if you don't save enough money to get you through a rough patch, then you made an unwise decision by carrying enough debt that you must file for bankruptcy.

[dmarc117]

Yes, if you don't save enough money to get you through a rough patch, then you made an unwise decision by carrying enough debt that you must file for bankruptcy.

 

 

tim, stop with the crazy talk!

[Kid Cid]

So what this really says is that if a disproportionate number of blacks and Hispanics have bad credit and I have to hire one of these people with bad credit to satisfy some type of cultural guilt, then the government is trying to get my business to fail. That's F'ed up right here.

[TimC]

tim, stop with the crazy talk!

 

If you support the Government, then run your personal life like they do for a month. Just one month and report back to me how it turned out.

 

Oh wait, you won't be able to because your electricity and internet and phone will all be cut off by evil corporations.

[dmarc117]

If you support the Government, then run your personal life like they do for a month. Just one month and report back to me how it turned out.

 

Oh wait, you won't be able to because your electricity and internet and phone will all be cut off by evil corporations.

 

 

who is gonna be my china? my welfare state?

[SEC=UGA]

So, I can not hire a white person if they have a conviction or bad credit, BUT, if it is a black or hispanic person I have to hire them or get sued?

 

What if the person is Asian? And, by the way, why don't we see Asians bringing these "civil rights" suits all the time, why as a minority, from a DRASTICALLY different culture, are we not seeing the same problems in the Asian community at such a high percentage rate? Oh, that's right, they're too busy working 60 hours a week, making sure their kids study and win scholarships, practicing for spelling bees, and trying to figure out exactly how to pronounce the letter "R" (though, the driving habits of their females is one thing that is a scourge to this country ).

 

On a side note, if they can't pronounce the letter "R" in a word how the frak is it that they can say it correctly when spelling a word in front of a national TV audience?

[lennykravitz2004]

to some, having a cc balance is bad decision making.

 

...which will be reflected appropriately in your credit score... no? Doesn't the credit score reflect how well credit is handled/managed by the individual with the credit line? Don't all companies have credit lines, purchased items on credit?

 

The (obvious) catch-22 being that I need to have a credit card, and use it - and depending on when the account is scored, a balance may display on it simply because the person hasn't made their monthly payment yet - in order for my credit score to go up... to prove I manage credit well.

 

Whoever thinks having a cc balance is a "bad thing" doesn't live in the real world. Just my

[dmarc117]

...which will be reflected appropriately in your credit score... no? Doesn't the credit score reflect how well credit is handled/managed by the individual with the credit line? Don't all companies have credit lines, purchased items on credit?

 

The (obvious) catch-22 being that I need to have a credit card, and use it - and depending on when the account is scored, a balance may display on it simply because the person hasn't made their monthly payment yet - in order for my credit score to go up... to prove I manage credit well.

 

Whoever thinks having a cc balance is a "bad thing" doesn't live in the real world. Just my

 

 

paying 18% interest on anything is a bad thing imo.

 

and paying only your minimum amount due actually gives you a better credit rating, so ive heard.

Edited August 13, 2010 by dmarc117

[Kid Cid]

...which will be reflected appropriately in your credit score... no? Doesn't the credit score reflect how well credit is handled/managed by the individual with the credit line? Don't all companies have credit lines, purchased items on credit?

 

The (obvious) catch-22 being that I need to have a credit card, and use it - and depending on when the account is scored, a balance may display on it simply because the person hasn't made their monthly payment yet - in order for my credit score to go up... to prove I manage credit well.

 

Whoever thinks having a cc balance is a "bad thing" doesn't live in the real world. Just my

Having a balance is a bad thing. Having used the card and paying off the balance before the interest kicks in is a good thing.

[TimC]

I sort of agree with lenny. I wish my credit score was zero....and I could still live in a real world.

[Big John]

I sort of agree with lenny. I wish my credit score was zero....and I could still live in a real world.

The lowest score is around 300

[paulzale]

I have outstanding credit and no criminal history, but I think it is wrong to allow employers to base a hiring decision on these factors alone. I do lean toward the criminal history check, but there has to be some line somewhere, people change especially as they get older and wiser. Again how far should we let employers dig into our personal lives, if this was government practice many here would be screaming big brother!

Edited August 13, 2010 by paulzale

[yo mama]

If you've got two equally qualified people, and you're using criminal background check/credit reports as a tie-breaker, I don't see a problem with that. But IMO, it would be preferable to just have the candidates fight to the death to cool 1960s music.

Edited August 13, 2010 by yo mama

[Caveman_Nick]

If you've got two equally qualified people, and you're using criminal background check/credit reports as a tie-breaker, I don't see a problem with that. But IMO, it would be preferable to just have the candidates fight to the death to cool 1960s music.

 

 

are always a good idea!

[tosberg34]

I have outstanding credit and no criminal history, but I think it is wrong to allow employers to base a hiring decision on these factors alone. I do lean toward the criminal history check, but there has to be some line somewhere, people change especially as they get older and wiser. Again how far should we let employers dig into our personal lives, if this was government practice many here would be screaming big brother!

 

I agree with this. In all reality, if we allow employers to base decisions on financial history then no one will have a job. Look at Donald Trump? How many times did he declare bankruptcy?

 

I think the only time your financial history should come in to play is if you handle money (such as a bank teller, accountant, etc...). I think there is too much room for discrimination.

 

Everyone can sit here all day long and talk about how we should do this, but the reality is not everybody has great credit and to broadly classify them as losers (which is what you are basically doing) is not looking at the reality of the situation. Not everyone is handed a silver spoon and what an earlier poster said, some people just run into a string of bad luck thru no fault of their own.

[lennykravitz2004]

I sort of agree with lenny. I wish my credit score was zero....and I could still live in a real world.

 

Let's move the world economy to a "cash only" basis? Sayyyy whaaaatttttttt??!?!

[Jackass]

Yes, if you don't save enough money to get you through a rough patch, then you made an unwise decision by carrying enough debt that you must file for bankruptcy.

 

I bet if some unforeseen circumstances affected you or your family you would think differently. Although i don't know your personal financial situation. Perhaps you're a millionaire and it doesn't matter.

[bpwallace49]

I run criminal checks and credit checks on every employee I hire . . as well as a comprehensive drug screening.

 

cause I sure as hell dont want to have to worry about litigation against someone that steals from my place of work or causes an injury because they are on drugs.

 

the credit scores are the smallest factor . . and mainly has to do with cash/merchandise responsibility and oversight. In my expereince a much smaller rate of incidence than with drug screening and criminal checks.

Edited August 13, 2010 by bpwallace49

[SEC=UGA]

I have outstanding credit and no criminal history, but I think it is wrong to allow employers to base a hiring decision on these factors alone. I do lean toward the criminal history check, but there has to be some line somewhere, people change especially as they get older and wiser. Again how far should we let employers dig into our personal lives, if this was government practice many here would be screaming big brother!

 

It is a private company, in many cases run by an owner, he/she/it should be able to make whatever hiring decisions they wish. It is their money that is used to pay you and they should be able to set the guidelines for who they feel appropriately represents the principles of the company.

[Perchoutofwater]

We do not check credit scores, but we check criminal histories on all potential hires. If they committed a violent crime of any kind they are automatically turned down. If they have any drug convictions they will not be hired for any position that requires them to use equipment other than small hand tools. If they have any type of theft charge they are automatically turned down, as I can't abide a thief.