• 06
  • January
    2012

Many persons seeking employment are aware that the company they wish to work for might check their credit scores as part of a routine hiring procedure. If an employer has to choose between a prospective employee with a good credit record and one that has a bad credit history, they most likely would not hire the applicant with a poor credit record. A representative from Manpower San Diego cites that, under California law, this is now prohibited.

The problem with relying on a credit report as an indicator of ethics, honesty or other desirable personal character qualities is that a poor credit record can develop due to circumstances beyond the control of that individual. Financial problems frequently arise following a medical emergency, death in the family, divorce or other circumstances that also can lead to negative entries on a credit report. A bad credit record is not necessarily a good measure of personal trustworthiness.

In California, this practice is now denied to employers, beginning in 2012; employers are now prohibited from running credit checks on job applicants. This law is similar to laws in effect in several other states. An exception is made for job positions that relate substantially to financial worthiness, such as the following:

  • Managers
  • Department of Justice positions
  • Law enforcement or sworn peace officer positions
  • Jobs that require the employee to regularly access confidential information like credit account or social security numbers.


If you feel you have been discriminated against during a hiring process due to your credit record, contact your employment discrimination and harassment attorney to review your case. In California especially, employers must follow state labor laws that now include this provision to prevent checking of credit records to determine employment suitability.

Source: WHEC, "Some states working to block companies from checking credit scores of prospective employees," Jan. 3, 2012