Recently, the so-called ‘Ban the Box Legislation’ is picking up momentum all across the country. Massachusetts was one of the first states to enact a state-wide ban on this type of information gathering and now locally, the city of Philadelphia has passed its own version.

Basically, the legislation states that an employer may not ask if the applicant has a criminal history by placing a box on the application to be checked yes or no. Advocacy groups have fought long and hard to protect criminals who are attempting to enter society after a time of incarceration and hit a brick wall when they apply for a job and are required to disclose their criminal history on the application.

The employer can and should inquire into an applicant’s background once the initial interview is completed. After the interview is completed, the employer may deny the applicant employment based on the fact that there is a confirmed criminal history.

A significant point to make is that some employers who used the box on their application were using this as a form of rejection and never following through on investigating the applicant’s background. With this legislation, it would be strongly advised that a criminal history check along with the other parts of the background investigation be completed. And it is very important to know that all applicants must be treated the same so if a criminal background is performed on one applicant, it must be done on all applicants.

Failing to perform a background check on your applicant could cause your world to turn upside down. Take this case for example. A trucking company hires a driver who knowingly has a history of motor vehicle violations did not fully disclose this information on his job application. The company does not conduct a thorough background investigation and hires the applicant as a truck driver.

The truck driver collided with two vehicles sitting at a traffic light causing injuries to one driver. The driver sues the trucking company and comes out with $581,000 in damages from the lawsuit.

Lesson to be learned. Do a thorough background investigation on any job applicant to ensure you are hiring qualified and truthful people for your company. Even though this applicant omitted the fact he had multiple motor vehicle violations, a background check on the applicant that verified this information would have clearly shown his poor driving record. And for the mere fact he lied on his application would have been enough to deny this applicant employment.

A critical piece of legislation recently unveiled by Congressman Steve Cohen (D-TN) would essentially prevent employers from using credit reports in the background screening process, with some restrictions on the type of organization, position, and level. HR 3149, titled The Equal Employment for All Act, would basically provide a level playing field for all individuals regardless of their credit history. To summarize it even further, it prohibits the use of consumer credit checks against prospective employees for the purpose of making an adverse employment decision.

There are several different exclusions to the bill:

When a person applies for, or currently holds, employment that requires national security or FDIC clearance.

When a person applies for, or currently holds, employment with a State or local government agency which requires such a report.

When a person applies for, or currently holds, a supervisory, managerial, professional, or executive position at a financial institution.

When otherwise required by law.

The bill is designed to help those with financial hardships that have poor credit histories be eligible for jobs they would otherwise be denied due to their credit history. Although credit checks are one part of the background screening process, they have become increasingly popular over the years as people are losing their homes to foreclosure, not paying financial obligations, in addition to other financial dilemmas that affect your credit history drastically. Your credit history is your lifeline when you are trying to purchase your first home or buy a new car. Companies are looking at credit in greater detail and knowing the person has a poor credit history, may prevent them from landing a new position.

I guess the most important thing to consider if this bill gets through Congress and onto final passage is that credit reports are only part of the background screening process. The employment verification, drug screening, motor vehicle search, reference check, and more importantly, the criminal background, will remain intact. If the background investigation investigation is truly complete, meaning all the above mentioned pieces are done correctly and thoroughly, you should have really no issue in denying or accepting the applicant for the position.