In theory, Artificial Intelligence (A.I.) gives companies the ability to pass human recruiting tasks on to automated tools. Not only does this delegate the prescreening process to a robot, it can also prevent would-be candidates from even becoming applicants. This...
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3 Important Questions to Ask About Employment Credit Reports
When New York City passed the nation’s most severe restrictions on employment credit reports in 2015, it joined 11 states and several other cities that limit the practice. Similar legislation is pending in 17 other states and at the federal level.
Even in places that have passed bans, though, exemptions exist. That’s because, despite the controversy, employment credit checks play an important – and in some cases required – role in due diligence around hiring.
A 2012 survey from the Society of Human Resource Management found that 45% of employers run employment credit reports to reduce or prevent theft, while 22% run them to reduce legal liability for negligent hiring.
Those who object to the practice cite the widespread damage to people’s credit caused by the recent recession and the fact t