LANSING – In order to ensure Michigan workers are getting a fair chance, State Representative Jon Switalski (D-Warren) today announced a plan that will create ban the use of credit scoring in making employment decisions.
"There are numerous situations that can affect residents' credit scores, especially in these tough economic times," Switalski said. "Many residents have lost their jobs or homes, and are barely making ends meet. This can have a serious impact on their credit score. If employers are allowed to continue using credit scores in hiring decisions, many hard-working people will be unfairly penalized."
Switalski's plan will establish the Job Applicant Credit Privacy Act. Under the plan, an employer will not be able to fire or refuse to hire an individual because of their credit history.
In addition, similar plans introduced today will prevent employer discrimination based on the health or illness of an employee's family member and on the physical attributes or fitness of an employee. Another plan will prohibit employers from making hiring and firing decisions based on a person's legal actions that are either unrelated to employment, happen off the company property, or done during non-work hours.
Currently, a worker can legally be fired for any reason, including off-work legal behavior, poor credit history, physical appearance, or the health or illness of a family member.
"It is unfair and discriminatory to look up one's credit score in determining employment," Switalski said. "Employers must use more relevant information, such as skills and experience when they are hiring and firing – not credit scores. I encourage my fellow lawmakers to act quickly on this legislation."