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Pre-employment credit checks could be history in Ohio

Jun 06, 2011 Matt Roesly

Pre-employment credit checks could be history in Ohio
A representative from Ohio seeks to ensure that passing a credit check isn't part of the strenuous job-seeking process, according to Public News Service.
 State Representative Alicia Reece recently introduced House Bill 131 to ban credit checks in employment decisions. The legislature is currently awaiting a second hearing from a House Committee. According to Reece, nearly 65 percent of employers use credit checks during the hiring process. Matthew Smith, legislative coordinator with the Ohio AFL-CIO, adds that this type of hiring practice is a form of discrimination, especially when a credit check is required for a simple, entry-level position. "We're not talking about major financial jobs. There are going to be exemptions for people who really handle money, like bankers and things of that nature," Smith tells the news source. "But some employers hiring cashiers and waitresses are requiring credit checks now, and that just doesn't make sense." Fox Business points out that companies are not required to give applicants the opportunity to justify bad credit, but a 2010 study by the Society for Human Resource Management found that 65 percent of employers said they'd hear out the reasoning of a negative credit rating before making a hiring decision.