The Act applies to employers of any size, but certain employers are specifically excluded from the Act’s coverage. Various financial institutions, as well as employers who are required to inquire into an applicant’s or employee’s credit history under federal or state law, are excluded from the Act’s prohibitions.
Maryland now joins Illinois, Washington, Oregon, and Hawaii as states that currently have restrictions or prohibitions on the use of credit information in employment decisions.
The various state laws provide limited exceptions that allow employers to request or use credit information where such information is related to a “bona fide purpose that is substantially job-related.”
HireSafe continues to advise their clients to only request credit reports where there is a clearly defined business need. Employers who use credit history as a routine part of a background check or other hiring processes should evaluate their policies in light of the recent momentum against using such information in employment decisions.
HireSafe offers intelligent, customer-driven solutions that help clients to lower cost, increase efficiency and reduce their exposure to employee liability risk. Formed in 1997, HireSafe is one of the earliest adapters of compliant and legal employment background screening. As a licensed CA Investigative Agency, HireSafe clients are assured of FCRA compliance with all state and federal background screening laws.
For more about HireSafe business solutions, news and policies, visit: http://www.hiresafe.com
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Hiresafe offers world class investigative background check services tailored to every level of employment needs, encompassing more than 75 different services in more than 250 countries and territories worldwide.