Sen. Warren Floats Bill to Stop Credit Checks by Employers

Sen. Elizabeth Warren, D-Mass., introduced Wednesday the Equal Employment for All Act, legislation that would prohibit employers from requiring potential employees to disclose their credit history when applying for a job.

“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 in introducing the bill. “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.”

Co-signers to the legislation include Sens. Ron Wyden, D-Ore.; Bob Menendez, D-N.J.; and Bernie Sanders, I-Vermont, who is running for president.

The bill has also been endorsed by more than 40 organizations.

Warren noted a study by the Federal Trade Commission earlier this year which suggested that errors in credit reports are common and, in many cases, have been difficult to correct.