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EEOC challenges use of credit history in hiring



The EEOC has brought a lawsuit in the Northern District of Ohio against favorite Obama Administration whipping boy Kaplan Higher Education Corporation. Kaplan investigates and uses credit history in employment decisions, and the EEOC alleges impermissible discriminatory impact.

Somebody should tell the Transportation Security Administration, which also performs credit checks: they reject job applicants if they have more than $5000 in overdue debt. Many other employers find using credit histories helpful in hiring; if the EEOC makes hiring employees riskier and more expensive, we can expect less hiring to happen, which can't be good for the unemployment rate.

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.