Sen. Warren Introduces Legislation That Would Prohibit Credit Check on Potential Employees

By CHARLENE ARSENAULT (Patch Staff)

U.S. Senator Elizabeth Warren, D-MA, on Thursday introduced the Equal Employment for All Act with Sens. Patrick Leahy, D-VT, Ron Wyden, D-OR, Dick Durbin D-IL, Bob Menendez (D, NJ), Bernie Sanders (I, VT), Sherrod Brown, D-OH, Sheldon Whitehouse, D-RI, Jeanne Shaheen, D-DH, Kirsten Gillibrand, D-NJ, Al Franken, D-MN, Richard Blumenthal, D-CT, Brian Schatz, D-HT, Tammy Baldwin, D-WS, Chris Murphy, D-CT, Mazie Hirono D-HI and Edward J. Markey, D-MA.

The legislation, according to an announcement on Sen. Warren’s website, would prohibit employers from requiring potential employees to disclose their credit history as part of the job application process.

Proponents of the act argue that credit history has little to no correlation to a person’s ability to be successful at a job.

“A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual’s character or abilities,” Sen. Warren said in a statement. “Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs. This is about basic fairness -- let people compete on the merits, not on whether they already have enough money to pay all their bills.”

Warren pointed to a Federal Trade Commission study that showed that errors in credit reports are common, and sometimes difficult to correct.

The Equal Employment for All Act has been endorsed by more than 40 organizations.

Senator Warren’s bill is based on legislation previously introduced by Congressman Steve Cohen, TN-9.