Applying for certain jobs may require a credit check

 Posted on October 01, 2019 in General Bankruptcy Topics

Filing for bankruptcy protection in Maryland may require planning for the future. A potential employer may run a credit check on job applicants before making a hire. This may be in spite of the Old Line State's Job Applicant Fairness Act which prohibits employers from using a candidate's credit report to hire or fire them.

Some companies are exempt from the Act's requirements and may use the information from a credit report to make a hiring decision. These employers may lawfully look into a candidate's credit history. A credit report check could also determine eligibility for a promotion in some cases.

Certain circumstances permit pulling a credit report in Maryland

State and federal entities that require pulling a candidate's credit report as part of a comprehensive background check are exempt from the Act's prohibitions. Banks, credit unions and financial institutions with deposits insured by a federal agency are also exempt. An employer in Maryland may lawfully check an employee's credit report for an individual who is already an employee if it does not affect the job's terms and conditions or pay rate.

Certain positions associated with a bona fide reason for checking an employee's credit history allow Maryland employers to do so legally. Examples include a position that requires management of funds or one which involves handling confidential personal information. An employer, however, must disclose in writing that an employee's credit report is a requirement for carrying out the functions of a position.

Employee's rights in sharing a credit report

Monster Jobs has reported on a prospective employee's rights during a job search when an employer requests their credit report. According to federal law, as long as an employer informs a candidate that they will run a credit check and then receives permission to do so, a credit report may be viewed in most states.

It may pay to check local laws regarding employment before looking for out-of-state work. For job seekers who might have a negative public record listed on their credit report, it may also be a good idea to learn how to effectively dispute the item before applying for certain jobs.