ANNAPOLIS, Md. | Lawmakers in 19 states and the District of Columbia hoped to prohibit employers from doing credit checks on most job applicants this year, but only two state legislatures have endorsed such restrictions so far. The Democratic governor of Oregon, Ted Kulongoski, signed legislation in March to bar many employers from checking the credit of job seekers. Illinois lawmakers approved similar legislation in May, and the bill is now awaiting Democratic Gov. Pat Quinn’s signature to become law. Hawaii and Washington already have similar laws on the books. The sponsor of the Illinois legislation, state Representative Jack Franks, says it was “very tough” to get his measure passed because there was “a lot of organized opposition.” He says he received more phone calls and e-mails on this legislation than anything else. “Its our neighbors, our families, our friends, we all know people who have lost a job through no fault of their own and have struggled to pay bills,” Franks said. An aide to the Illinois governor declined to comment on whether he’d sign the bill since it is still under review. A spokesman for credit reporting agency TransUnion, Steven Katz, said his industry made it clear to state lawmakers across the country that businesses see credit checks as a valuable hiring tool. Katz adds that credit checks could make companies more likely to add to their staffs, since “knowing they have good insight” into job applicants could “help spur hiring.” Sen. Diane Rosenbaum, who sponsored the Oregon legislation, countered that lawmakers there heard a statement from a credit reporting agency official who said there was no indication of a link between a person’s credit history and their job performance or the likelihood of the person committing fraud. “When the industry itself was saying there was no evidence, that was very compelling,” Rosenbaum said. In Maryland, the bill did not make it to the floor for consideration in either the House of Delegates or the state Senate. In at least nine other states from Oklahoma to Vermont, credit check measures died when the session ended; although a few state assemblies that have yet to adjourn for the year, including Pennsylvania, Ohio and California, still have time to pass the bills. Oregon resident Stacey Howard, who works for a nonprofit community development corporation and says she struggled with credit issues after a business she owned went bankrupt, called the measure “a great first step.” Most states, including Oregon, have exceptions in their legislation that allow employers to check credit histories for certain positions, if it’s viewed as substantially job-related. Howard says allowing credit checks in any employment situation implies they are a valid indicator of job performance or ethics. “I want them to either prove validity or stop use altogether,” Howard said.
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