Credit Checks on current EEs
FunHRBanker
562 Posts
Do any of you do periodic credit checks on current employees? During an IT audit, we were encouraged to do random credit checks. Any input would be appreciated!
Comments
And remember that you may not discriminate against any employee for filing for personal bankruptcy...
what information does your auditor believe will be helpful on the ee's credit report?
This one stumps me (admittedly not hard to do today).
Also, if you use that information and take any adverse employment decisions (i.e. not hiring, promoting, transfering, etc.) you must follow specific instructionsa as far as notifying the employee of the actions taken, based on what information, where that information was obtained, etc.
With a screen moniker like that, it must be difficult to deal with such an unfun subject. You indicate in your reply to my earlier post that IT has access to wire information and online banking and that you have authorization to obtain consumer credit reports for all applicant.
A couple of thoughts here. 1. If your IT people have access to online banking in their capacity as IT ees, and further, if they can circumvent or manipulate the system for personal gain, then you have some real big issues that have little to do with credit reports. Segregation of duties and banking security protocols are probably in place. If not, then you should immediately get in some pros to take care of this exposure.
2. If they just have normal system access and you are still worried, get the paperwork in place that allows you to do the credit checks. Several posters on this thread have indicated the proper steps to take.
3. An approval on an application in connection with hiring may not be sufficient to cover you for post-hiring issues, notwithstanding the box that is checked. You might need to consult your counsel to determine if it is enough to do what you want. I think you need to take additional steps to cover your rear.
The only time you should be doing a credit check is when the position being applied for handles money or drugs. The other is when you have funds missing and you have already made your 'acusation'. Even then it's best to let your attorney do that. But, to just do credit checks on current employees as an annual event and the job does not warrent it (handles funds, etc.), you're stepping into the arena of invasion of privacy. Question: Did your employees sign an agreement to this when they were hired? This is really a slippery slope!!!!!!
If you wish to run credit checks on current employees, you must have their permission to do so.