When applying for a job in Wisconsin, potential employers can run background checks that show debts, available credit, and payment history. This is allowed in most states, including Wisconsin. Experts say job seekers and employees should know their rights in this process.
Background Checks and Credit History
Background reports that show financial information typically include credit accounts, payment history, available credit, bankruptcies, liens, and self-reported work history. However, they do not show credit scores, income, birth date, marital status, or medical debts.
Employers need written permission to use a third-party company to run a background check, as per the Fair Credit Reporting Act. This law protects consumers from false information in their credit reports. If an employer wants to run a background check later, such as for a promotion, they need to get permission again.
Protections and Restrictions
The Fair Credit Reporting Act’s protections apply only when employers use another company to run the background check, not when they use tools like the Wisconsin Circuit Court Access Program (CCAP) to check a person’s history themselves. In the city of Madison, employers face stricter limits on using credit history, as it is one of the characteristics denoted in the city’s equal opportunity ordinance.
If an employer takes an adverse action based on a background report, they must give the employee or applicant a pre-adverse action notice, along with a copy of the report and an explanation of their rights. Employers can use credit history to assess trustworthiness or responsibility, but experts question its usefulness in most employment decisions.
Disputing Credit Report Errors
If an individual believes there is a mistake on their credit report, they can dispute it by contacting the consumer reporting agency. The agency must investigate and remove the information if it cannot be verified. If an employer uses credit history inappropriately, individuals can contact an employment lawyer to discuss potential damages.
Original reporting: Wisconsin Watch — read the source article.
