'Credit Checks on Jobseekers Catch 22,': Sen. Barrett, Experts

State Senator Mike Barrett, D-Lexington, testified along with experts on a bill that would stop employers from using credit checks as part of the hiring process. Advocates for the poor joined Barrett to highlight his proposal as a way to provide relief for people experiencing financial hardships.

“Running credit checks on job applicants operates as an unfair barrier to employment,” Barrett said in a statement. “People can get low scores because of unavoidable circumstances -- because they’ve been laid off or become very ill.”

Barrett’s bill prevents employers from using credit reports for hiring purposes or from asking an applicant about his or her credit standing, except when federal or state law requires it.

Speaking in favor of the proposal in front of the Legislature’s Committee on Labor and Workforce Development were Chelsea Sedani of Crittenton Women’s Union, Nadine Cohen of Greater Boston Legal Services, Amy Traub of Demos and Gillian Mason of MA Jobs with Justice.

“This bill will put a stop to the vicious Catch-22 of employment credit checks, in which workers lose their jobs, can’t pay their bills due to lack of income, then can’t find another job due to bad credit records,” said Chi Chi Wu, National Consumer Law Center Staff Attorney, in a statement. “There’s no solid research to show that a worker’s credit history is a reliable predictor of job performance or likelihood to commit fraud.”

According to the U.S. Bureau of Labor Statistics, 71,000 Massachusetts residents last year were considered long-term unemployed, averaging 34.9 weeks between jobs.

“It’s a shame that those who are poor or are struggling in this economy have to worry that a would-be employer will run a credit check -- however irrelevant the results might be to the job,” Barrett said in a statement.