As an employer, is it legal to impose a “good credit or no hire ” policy, particularly if I get a signed waiver for a credit check at the time of hire?
Yes. You can require a credit report, and you will not be violating the law if you decide not to hire the person because of a bad report. A bad credit report may mean that an employee is more likely to steal, embezzle or abuse his or her position. Obtaining an authorization from the employee prior to running the credit check is highly recommended. In the signed waiver, among other important provisions, you should add language stating that the credit report will be made available to the employee. You would be well advised to hire an attorney who specializes in employment law to assist you with the preparation of the waiver form.
Related Questions
- As an employer, is it legal to impose a "good credit or no hire " policy, particularly if I get a signed waiver for a credit check at the time of hire?
- Can an employer get into legal trouble for making an effort to hire more females and minorities?
- What is USE Credit Unions nepotism policy (that is, do you hire relatives of current employees)?
