Skip to main content

View Diary: Pre-Employment credit checks, and unemployment discrimination. (111 comments)

Comment Preferences

  •  It's in use (8+ / 0-)

    because of the marketing efforts from the three credit rating agencies towards business.

    And because it's easier for employers to quickly eliminate the hundred of job applications and "skim the cream off the top" if you will.

    Also just because it doesn't work has no bearing on if you can make money selling it. There are plenty of things people buy that are ineffective, look at the diet pill industry lol. It's all about marketing.

    Also what skills, 60% of employers use credit scores for hiring purposes, there is a good many of those are not high skill, especially when Taco bell is the third highest employer in the US. I'm pretty sure Wal-Mart is quite high on the list as well since they employ 1 million Americans, those are low skill jobs that still shut out the long term unemployed.

    Manufacturing is another low skill job too. I can understand pulling a credit report if you want to be a banker (I encourage it actually) but not if you're flipping burgers.

    •  Your business is on the line (0+ / 0-)

      You are hiring for a critical position that could make or break your company (and perhaps dozens of other jobs in the process). You need someone skilled, on-the-ball, and as close to guaranteed not to screw up as possible.

      Your company's future may be riding on this hire.

      Hire the person who has been out of work for a year and went through a medical bankruptcy?

      Or hire the person who has been working for years and has been working effectively at a similar job for years, up until the present?

      Remember, your future employment and those of your employees may rest on the answer.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Wed Dec 05, 2012 at 09:00:21 AM PST

      [ Parent ]

      •  Credit ratings have no link (14+ / 0-)

        To whether or not a person will be a good employee.

        One would think the person behind on bills would work even harder and more hours to get caught up.

        Having a good credit rating means nothing, for example I'm sure Jack Abramoff had a shining credit report, and Jeff Skilling too.

        Two extreme examples sure, but valid nonetheless.

        You have to look at their education and skills, as well at least grant them an interview to gauge them in person.

        And besides I'm not arguing for the person with unemployment and bad credit to be handed a job. I'm just arguing that those should be not grounds to immediately shred their applications without giving them a chance.

        •  Re (0+ / 0-)
          And besides I'm not arguing for the person with unemployment and bad credit to be handed a job. I'm just arguing that those should be not grounds to immediately shred their applications without giving them a chance.
          Ah, exactly my point.

          How do you write such a law banning discrimination? How do you differentiate between what you presumably consider legitimate and illegitimate discrimination?

          With race, religion, etc the assumption is that these things have no reasonable impact on someone's employment status.

          However, unemployment status may well have an impact (or it may not). How do you write a law that it's possible to comply with that allows you not to hire people that suck, but disallows you from discriminating against the unemployed?

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Wed Dec 05, 2012 at 09:18:54 AM PST

          [ Parent ]

          •  That's a good question (5+ / 0-)

            I think they could simply enforce this by forcing employers to take the credit check permission checkbox off of the application (unless it's a job that strictly works with money)

            As for unemployment discrimination, the first step would be to fine companies from putting up job ads that say "Must be currently employed."

            There is a law by Rep Steve Cohen that outlines the way to end these practices, it's in my sources.

          •  Uh... the same way you write any other ND law? (2+ / 0-)
            Recommended by:
            RockyMtnLib, kyril
            How do you write a law that it's possible to comply with that allows you not to hire people that suck, but disallows you from discriminating against the unemployed?
            How do you write a law that it's possible to comply with that allows you not to hire people that suck, but disallows you from discriminating against women? Against black people?

            Or, more to the point, how about against old people? Being old and infirm can be a definite disadvantage in a job. But at the same time, not hiring people just because they're old is obnoxious and illegal. Somehow, the EEOC has successfully made a law that walks that line. (It errs on the side of the employers, but then basically ALL laws do, and it's way better than nothing.)

      •  Or you could look at their resume, talk to their (12+ / 0-)

        past employers, get a writing sample, look at their education history, conduct an interview or three, perform some testing, and do all the other stuff that employer do to find the best candidate. My employer doesn't do credit checks, drug tests or ask about past public assistance but somehow, our organization has not imploded.  

        How did employers ever hire anyone before credit checks?  One can only wonder.  

        •  What a concept! (7+ / 0-)

          I've been unemployed for well over a year. I have tons of excellent references, but no one gets to the point of checking them. I've even asked my references to let me know if any potential employer contacts them. No one has been contacted yet. I've even tried to "mask" my unemployment status by claiming I've been a freelance journalist/publication designer for the employment gap period--not untrue, though I've been paid almost nothing for that work. Have also done some under-the-table landscaping/labor work but at over age 50 and with a very bad back and no health insurance, that's risky (and few will employ me for labor....mostly friends have done so).

      •  Hire the person who really needs a job (9+ / 0-)

        and is motivated to come to work for you and stay with you a long time, or

        hire the person who spends half his workday looking for new, better paying jobs?

        Fry, don't be a hero! It's not covered by our health plan!

        by elfling on Wed Dec 05, 2012 at 09:16:30 AM PST

        [ Parent ]

        •  Super Troopers quote (1+ / 0-)
          Recommended by:
          Odysseus

          "Desperation is a stinky cologne, John."

          It's just an employment fact that most people will prefer people who have other options (just like in romance).

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Wed Dec 05, 2012 at 09:44:47 AM PST

          [ Parent ]

          •  I realize, but I've also seen that preference in (5+ / 0-)

            action, and I've been able to scoop up some really amazing talent by not sharing it.

            By contrast, when I worked for a company that had that preference, I sat in a cubicle next to a guy who was poached from a competitor and then gone again 6 months later when he had a better offer.

            Fry, don't be a hero! It's not covered by our health plan!

            by elfling on Wed Dec 05, 2012 at 01:39:09 PM PST

            [ Parent ]

            •  Sure (1+ / 0-)
              Recommended by:
              elfling

              It's not (always) rational, but there you have it.

              If we were going to pass laws requiring people to be rational in everything they did, well, yeah.

              (-5.50,-6.67): Left Libertarian
              Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

              by Sparhawk on Wed Dec 05, 2012 at 04:03:33 PM PST

              [ Parent ]

      •  You're not allowed to ask about health (1+ / 0-)
        Recommended by:
        Miggles

        history. Medical bankruptcy is obviously a way around that.

        Fry, don't be a hero! It's not covered by our health plan!

        by elfling on Wed Dec 05, 2012 at 09:18:20 AM PST

        [ Parent ]

      •  But the scenario you cite doesn't require a (0+ / 0-)

        credit check.  Look at the CV, and if the applicant has up-to-date experience in the area you need, then good.  WTF is the purpose of a credit report for that???  A credit report won't say shit about how well someone operates a forklift in Costco.  A bankruptcy won't say shit about how well that forklift is operated either.  Simply irrelevant.

        •  Of course it's irrelevant. (0+ / 0-)

          to those jobs. But that doesn't mean employers don't use that as a screening tool anyway.

          There is a mentality that many have today that says the poor, long term unemployed, and people with bad credit are lazy and untrustworthy.

          A stigma if you will.

          I don't see why someone who has been out of work 1 year can't drive a hilo at costco, or someone with bad credit for that matter.

          But credit reports are used as a judge of character, trustworthiness and work ethic.

          And they have no place except for high finance.

      •  It's against the law to discriminate because of (0+ / 0-)

        bankruptcy.

        You are just peddling hogwash not supported by the facts.

        It's none of your business what my financial situation is.

    •  Manufacturing is another low skill job too.?? (0+ / 0-)

      When were you last in a manufacturing plant? It's true that we once hired backs, shoulders, legs, arms and sometimes fingers for delicate work, but that's been changed for a long time now.  We hire eyes, ears, and yes heads to plan, operate, program, analyze and fix the machines that manufacture products. Low skill indeed?

      Liberty without justice is impossible; justice without liberty is unbearable.

      by pee dee fire ant on Wed Dec 05, 2012 at 09:24:39 AM PST

      [ Parent ]

    •  Exactly. The corporate world is rife with (1+ / 0-)
      Recommended by:
      AnotherProgressive

      conventional wisdom practices that are totally ineffective.  They do things like spend tens of millions on management consultants who suggest that they call their employees "associates" or "partners" instead of actually improving the employer/employee environment or increasing productivity.

Subscribe or Donate to support Daily Kos.

  • Recommended (151)
  • Community (66)
  • 2016 (44)
  • Environment (43)
  • Republicans (39)
  • Culture (37)
  • Elections (36)
  • Bernie Sanders (34)
  • Memorial Day (31)
  • Labor (28)
  • Media (27)
  • Education (26)
  • Climate Change (25)
  • Trans-Pacific Partnership (25)
  • Civil Rights (24)
  • Barack Obama (24)
  • Hillary Clinton (24)
  • Spam (23)
  • GOP (23)
  • Economy (22)
  • Click here for the mobile view of the site