Posts Tagged: credit check

Kaplan 2, EEOC 0

The intriguing results of a highly-publicized EEOC lawsuit highlight that if the EEOC is to win a judgment against an employer for disparate impact discrimination, it must use valid statistical methodology to prove “disparate impact”. This case demonstrates why that will not be easy to do. EEOC v Kaplan The EEOC recently sued Kaplan Higher Education… Read more »

The Real Impact of Employment Credit Reports is Not What You Think

Credit scoring is widely used in the underwriting and pricing of mortgage and consumer credit, and the credit information used to derive these scores is commonly used in employment screening for certain sensitive positions. Despite their widespread use, credit scores and credit histories raise concerns over an unfair disadvantage to minority populations. These concerns center… Read more »

In Other Non-News, 5% of Employment Credit Reports Have Errors

Employment credit reports have been in the spotlight in recent years as states battle over whether employers should evaluate workers on the basis of their creditworthiness. Employers routinely use credit reports—for financially sensitive positions and alongside other background screening measures—to assess a candidate’s financial responsibility and potential risk. One argument being played out in the… Read more »

Despite Rumors, Employment Credit Reports Still Not Prohibited by Federal Law

Earlier this week, a U.S. District Court in Ohio granted summary judgment to Kaplan Higher Learning Edu. Corp., et al, in a case that underscores the difficulty the EEOC faces in proving a case against employers for the discriminatory use of credit reports in the hiring process.  The EEOC filed suit against Kaplan alleging that… Read more »

The Background Credit Check Under Fire: Fair or Not?

Is an Employer’s Use of Background Credit Checks Appropriate? Under fire from consumers, state legislators, and the EEOC, the background check utilized by employers to judge individuals’ suitability for certain jobs is being challenged. The use of background checks and specifically the background credit check has been under intensifying debate among national and state officials… Read more »