You may have heard that Congress is considering blocking employer access to credit report data. Many feel that denying employment due to credit problems, when the candidate is otherwise qualified, is unfair, particularly on the heels of a recession.

On the other hand, hiring without due diligence can place you in danger of a negligent hiring lawsuit. Plus, employers often need help in making a decision when they are on the fence about someone, or when they have a number of qualified candidates.  And in some cases, this particular information might be very helpful.

However, there remains  a lot of  ambivalence nationwide regarding credit reports for employment screening. In fact, California tried to pass a law in October, 2009 to severely limit credit checks by employers, but the governor vetoed it in the end.

So, what does an employer do? The best advice at this point, (from our general counsel – Tamsen Leachman of Dunn Carney, Portland) is this:

If you are running a credit check, make sure the position you are hiring for has job duties directly related to finances, cash-handling or access to cash, accounts or credit and that you have a valid, job-related reason for the check.