Gutierrez cosponsors proposed law to ban credit report usage in hiring

The Equal Employment for All Act, a federal law co-sponsored by Luis Gutierrez, US Representative of the 4th District (D-IL), and Rep. Steve Cohen (D-TN), proposes a ban on the use of credit reports when hiring employees. Gov. Pat Quinn signed a State of Illinois bill, three weeks ago, that prohibits the practice.

Guitierrez and UNITE HERE* launched a campaign to promote the Act on Aug. 30 in Chicago. Hundreds attended and gave testimony to the fact that a bad credit score is not reflected in one's ability to do good work and be a good employee.  "My credit report will tell you about my multiple trips to the hospital, but will it say anything about whether I'll do a job well?" asked Ms. Debra Banks.  Banks, who has lost multiple jobs because of a bad credit report, traveled from Los Angeles to testify.

Americans' credit histories are being wrecked by job loss, foreclosures and medical debt at a time when sixty percent of employers are using credit checks as a way to screen out job applicants. According to UNITE HERE, some employers are also checking the credit reports of current employees that apply for promotion.  The federal legislation is supported by a wide range of organizations such as UNITE HERE, NAACP, National Council of La Raza and NOW.

TransUnion, the world's largest privately held credit reporting company, leads the opposition to the proposed legislation. With record-high unemployment rates, critics of credit checks contend that TransUnion and other companies that sell credit information to employers are obstacles to our nation's economic recovery.

TransUnion, a Pritzker family company which sold fifty-one percent of their ownership in April to Madison Dearborn Partners LLC, is run by Penny Pritzker.  She currently serves as a member of President Obama's Economic Recovery Advisory Board (PERAB).

*UNITE HERE represents over 250,000 workers throughout the U.S. and Canada who work in the hospitality, gaming, food service, manufacturing, textile, laundry, and airport industries.

Photo courtesy of Annemarie Strassel of UNITE HERE.

For more info: Gutierrez; UNITE HERE; TransUnion; Pritzker