Sixteen states, including Illinois, are considering legislationthat will ban or limit pre-employment credit checks. In Illinois,House Bill 4658, introduced by state Rep. Jack Franks, D-Woodstock,will seek to limit pre-employment credit checks of potentialemployees by employers. the bill is a revised version of House Bill4855, which was tabled Feb. 26 and sought to prohibitpre-employment credit checks in all sectors.

Franks said he filed the bill because of the deepening economiccrisis in Illinois.

If passed, House Bill 4658 would create the Employee Credit PrivacyAct, which will prohibit employers from using an employee’s orpotential employee’s credit history to determine employment,recruitment, discharge or compensation. there some exceptions tothe bill, which would allow pre-employment credit checks for bonafide occupational requirements.

A bona fide occupational requirement as outlined by the bill is: Ifstate or federal law requires bonding of an individual holding theposition, if duties include access to $1,000 in cash or assets, ifjob duties include signatory power of business assets of $100 ormore per transaction and if the position meets the Department ofLabor’s criteria that credit history is a bona fide occupationalrequirement.

The Illinois bill is similar to laws in Hawaii and Washington,which limit pre-employment credit checks to people seekingemployment in the financial sector.

Franks said the bill seeks to address unfair hiring practices intoday’s tough job market. He said, without the measure, if two goodjob candidates apply for the same job, the employer will mostlikely hire the applicant who has better credit. He added thatvictims of identity theft who have had their credit ruined oftenfind it difficult to gain employment if they’re subject to apre-employment credit check.

Franks doesn’t believe bad credit is necessarily a sign offinancial irresponsibility. He said with unemployment at 11 percentin Illinois, 20 percent of homeowners owe more on their home thanit is worth; people are defaulting on loans, losing their healthcare; and go further into debt if they have an illness. all ofthese are factors Franks said he believes perpetuates the cycle ofbad credit leading to not being able to gain employment.

“It’s not fair at this point,” Franks said. “We need to give peoplea chance.”

State Rep. Mike Bost, R-Murphysboro, speaking on House Bill 4855,said he believes the practice of pre-employment credit checks doesnot constitute discrimination and, in some cases, is necessary. Hesaid he thinks checking credit history for potential employees whomay work as bank tellers or handle sensitive materials is necessarybecause potential employees who have a large debt pose a higherrisk to employers.

Bost said it makes sense to continue the practice of checking thecredit history of potential employees in the financialsector.

“Some businesses need protection,” Bost said.

Rosie Robinson, a business services administrator at Man-Tra-Con,said her company does not typically perform credit checks onpotential employees. she said Man-Tra-Con does counsel job seekerson the implications of credit and employment.

Robinson said she understands the need for pre-employment creditchecks for potential employees in the financial sector, but shedoesn’t think the checks are necessary for jobs in other sectors.she said she is in support of limiting pre-employment credit checksbecause she understands job seekers may face life situations, suchas medical hardship, that could affect their credit and that hiringa person based on that rating doesn’t speak to their jobperformance ability.

“It isn’t a valid indication of what a person can do,” Robinsonsaid.

stephen.rickerl@thesouthern.com