Thursday, March 25, 2010
Credit Check Bill Defeated
The Senate Finance Committee rejected legislation (SB 312) that would have prohibited employer from using an applicant’s credit report or credit history when making hiring decisions. The vote was 6-5. Those Senators who voted for the motion for an unfavorable report supported the Chamber’s position.
The Maryland Chamber of Commerce opposed the bill. The issue is already well regulated at the federal level, where applicants and employees are protected through the Fair Credit Reporting Act, Uniform Guidelines on Employee Selection Procedures, Federal Bankruptcy Act, as well as other Federal and Maryland laws that limit possible adverse impact on an individual. Several Maryland Chamber member companies testified against the bill during the hearing.
“The Maryland Chamber thanks the Finance Committee for giving this bill an unfavorable report,” Maryland Chamber Vice President of Government Affairs Allyson Black said. “Employers need the flexibility to use a variety of factors to determine the best candidate to fill a position. This is particularly true for employees who handle cash or financial information.”
Credit checks conducted during the pre-employment phase of the hiring process are one of the most valuable componets of applicants background. Additionally the credit check along with the court record search is very cost effective.Passage of this bill would have seriously effected the employer’s ability to make informed hiring decisions.