Pamela Devata Quoted in USA Today, Baltimore Sun and CCH Workday
Discussing Use of Employment Credit Reports by Employers

Seyfarth Shaw employment partner Pamela Devata, who testified before the Equal Employment Opportunity Commission (EEOC) October 20 about the use of credit checks as a screening tool for job applicants, was quoted in USA Today, Baltimore Sun and CCH Workday.

In the USA Today article, Pam commented that employers argue that credit reports contain relevant information about applicants for sensitive positions. She also noted that some employers believe that putting applicants with poor credit in positions with access to large sums of money or merchandise, "may create unnecessary risk of fraud or theft." View the article here: http://www.usatoday.com/money/perfi/columnist/block/2010-10-26-yourmoney26_ST_N.htm.

According to the Baltimore Sun, Pam told the EEOC that most of the time employers using credit checks will conduct them only after an interview or a conditional job offer has been made. One reason companies use credit checks is that it's difficult to get meaningful references, Pam said. Former employers are reluctant to say anything bad about an ex-worker for fear of being sued, while websites have popped up offering fake references, she commented. "Employers are struggling to get good information." Managers also won't hold debt accrued from a divorce, health issues or a job loss against applicants, she added. View the article here: http://www.baltimoresun.com/business/money/bs-bz-ambrose-credit-report-20101024,0,4063372,print.story.

Pam explained in the CCH Workday article that employers use credit reports to get information on a candidate's fiscal responsibility, judgment skills or habits that cannot be obtained through other means. References are not helpful because former employers generally will not give a candid statement regarding former employees when asked, she noted. Pam also pointed to the blossoming fake reference market. Moreover, credit reports can show information that applicants may not have provided. As to debt that shows up on credit reports, she stressed that employers are looking only for patterns, history, multiple sources and whether the debt is being repaid. When an applicant is repaying debt, it is viewed as a positive, she said. View the article here: http://www.employmentlawdaily.com/index.php/news/employer-use-of-credit-checks-prevalent-but-validity-as-screening-tool-unknown/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CCH-Workday+%28CCH+WorkDay%29.