THE MAGAZINE

U.S. Congressional Legislation: Background Screening

The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit held a hearing to consider H.R. 3149 (.pdf), which would amend the Fair Credit Reporting Act (FCRA) to prohibit a current or prospective employer from using credit reports to make employment decisions such as hiring, firing, or promotion. Witnesses who spoke in support of the rights of employers to use such reports argued that the information is not used in a vacuum but is among the many tools companies use to make good hiring decisions. Opponents contended that credit scores are often inaccurate and have not been conclusively linked to inappropriate workplace behaviors, such as theft.

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