On Wednesday, the House Workforce Development and Workplace Safety Committee held a public hearing on HB 164, sponsored by Rep. Sharon Pace. The bill would prohibit an employer from using a job applicant’s personal credit history as a hiring criteria except where the credit history is shown to be directly related to the position sought by the applicant.
Currently, If an employer checks credit reports when hiring employees, it must follow the legal rules set out in the federal Fair Credit Reporting Act (FCRA). The FCRA requires employers to:
• get the applicant’s consent before pulling the report • give the applicant a warning (along with a copy of the report received) if the employer plans to reject the applicant on the basis of the report, and • give the applicant an official adverse action notice if the employer does not hire him or her because of the contents of the report.
“The Missouri Chamber of Commerce is opposed to this legislation because it would take away a valuable tool businesses use in the hiring process,” Brendan Cossette, director of legislative affairs/associate general counsel for the Missouri Chamber, said. “This is just one tool among many that can give an employer an idea of whether the person they are evaluating is responsible and suited for the job in which they have applied. We don’t feel that tool should be taken away from them.”
The bill has not been voted on. For more information about this issue, contact Cossette at email@example.com or by phone at 573-634-3511.