03-21-2010, 04:11 PM
Not a guideline, it is the law:
Under a newly enacted state law, effective July 1, 2009, it is illegal for an employer to
“refuse to hire or employ or to bar or discharge from employment, or otherwise to
discriminate against any individual … because of the individual’s credit history or credit
report.” * Hawai‘i is the first state to prohibit employment discrimination based on credit
history or credit report.
Employers are allowed to inquire into and consider a prospective employee’s
credit history or credit report only after making a conditional offer of
employment. The conditional offer of employment can be withdrawn if the credit
history is directly related to a bona fide occupational qualification (BFOQ). To
establish a BFOQ, an employer is required to show that a credit history or credit
report is reasonably necessary to the normal operations of the business and has a
substantial relationship to the functions and responsibilities of the position. For
example, an employer could establish a BFOQ for a position that requires an
employee to be bonded in order to perform the duties and responsibilities of the
job.
• Federally insured financial institutions, banks and credit unions, are not covered
by the new law.
• Managerial and supervisory employees are not protected by the new law.
• Employers who are expressly permitted or required by federal or state law to
inquire into an individual’s credit history for employment purposes are not subject
to the new law.
* Act 1, Special Session 2009, amending Hawai‘i Revised Statutes chapter 378, part I, §378-2.
Under a newly enacted state law, effective July 1, 2009, it is illegal for an employer to
“refuse to hire or employ or to bar or discharge from employment, or otherwise to
discriminate against any individual … because of the individual’s credit history or credit
report.” * Hawai‘i is the first state to prohibit employment discrimination based on credit
history or credit report.
Employers are allowed to inquire into and consider a prospective employee’s
credit history or credit report only after making a conditional offer of
employment. The conditional offer of employment can be withdrawn if the credit
history is directly related to a bona fide occupational qualification (BFOQ). To
establish a BFOQ, an employer is required to show that a credit history or credit
report is reasonably necessary to the normal operations of the business and has a
substantial relationship to the functions and responsibilities of the position. For
example, an employer could establish a BFOQ for a position that requires an
employee to be bonded in order to perform the duties and responsibilities of the
job.
• Federally insured financial institutions, banks and credit unions, are not covered
by the new law.
• Managerial and supervisory employees are not protected by the new law.
• Employers who are expressly permitted or required by federal or state law to
inquire into an individual’s credit history for employment purposes are not subject
to the new law.
* Act 1, Special Session 2009, amending Hawai‘i Revised Statutes chapter 378, part I, §378-2.