Are Credit Checks Illegal?

• Date: 01 July 2019

Even seemingly neutral hiring criteria may inadvertently have an adverse effect on a protected group of people. Using credit histories when evaluating applicants for employment has come under the watchful eye of government agencies, because, among other things, it may have a disparate impact on certain minority job applicants. Insurance industry human resources executives should be aware of these rules. The Equal Employment Opportunity Commission ("EEOC"), for example, recently filed suit against an employer alleging that the company engaged in a pattern or practice of unlawful discrimination by refusing...