Elizabeth Warren Introduces Bill to Prevent Employers From Discriminating Against Poor People

[xchrom]

http://www.motherjones.com/mojo/2013/12/elizabeth-warren-employers-credit-check


Sen. Elizabeth Warren (D-Mass.) with White House senior adviser Valerie Jarrett. Ron Sachs/Cnp/Prensa Internacional/ZUMAPress

On Tuesday, Sen. Elizabeth Warren (D-Mass.) and six of her colleagues in the Senate introduced a bill that would prevent employers from using credit checks in the hiring process, a practice that disproportionately hurts poor people.

Over the past few decades, credit reporting bureaus have begun selling their services not just to lenders, but to a wide range of employers. Forty-seven percent of employers check applicants' credit history as an indicator of their employability, according to a 2012 survey by the Society for Human Resource Management. But research shows that a person's credit score has nothing to do with her likelihood of succeeding in the workplace. The Equal Employment for All Act—co-sponsored by Sens. Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Patrick Leahy (D-Vt.), Edward J. Markey (D-Mass.), Jeanne Shaheen (D-N.H.), and Sheldon Whitehouse (D-R.I.)—would prohibit the judging of applicants by this metric.

"A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual's character or abilities," Warren said. "Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs. This is about basic fairness—let people compete on the merits, not on whether they already have enough money to pay all their bills."

The bill, which is backed by over 40 community, financial reform, labor and civil rights organizations, would be a boon for low-wage workers, minority communities, and women. Credit checks used in the hiring process disproportionately disqualify people of color. Divorce tends to hit women's finances harder than men's, and women are also more likely to receive subprime loans than men.

[Mass]

1. Excellent measure. Proud of my two senators.

Unfortunately, it will not pass the house, but at least it is on the table.

[BlueJazz]

2. I posted this once before>> ...and don't forget those of the populace that have had...

...their identity stolen. This USED to not be such a big deal but in the day of internet and con-jobs, it's getting almost common-place.

From experience, one of my woman-friends had her identity stolen and had a HELL of a time getting a job. (She did land a job but was mostly in tears every time an employer turned her down)

Very unfair.

[el_bryanto]

3. That sounds like a really good step

Nice to see.

Bryant