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Do Employers Use Credit Checks as a Form of Discrimination?

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Do employers discriminate in the hiring process based on credit checks? Why or why not?

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Solution Summary

This solution discusses the ethics and decision making behind employer's use of credit checks in the hiring and selection process. This has been the subject of much debate especially when not all jobs will require employees to handle money - the most obvious reason for employer's running a credit check. the EEOC states that 60% of employers do refer to employees' credit reports when making important employment status decisions. Why is this necessary?

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The real question here is whether or not credit checks are ethical. This has been the subject of much debate especially when not all jobs will require employees to handle money - the most obvious reason for employer's running a credit check.

In the attached article by the EEOC it is stated that 60% of employers do refer to employees' credit reports when making important employment status decisions. The reasons for using a credit check in the hiring process can range from identifying the ...

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