TO: Members of the Wisconsin State Assembly
FROM: John Metcalf, Director, Human Resources Policy
DATE: April 21, 2010
RE: Opposition to AB 367 - Credit History Discrimination

Assembly Bill 367 prohibits employment discrimination based on credit history. The bill specifies that employment discrimination because of credit history.  It is not employment discrimination to request that authorization: 1) if the circumstances of an individual’s credit history are substantially related to the circumstances of a particular job or licensed activity; or 2) if employment, membership, or licensing depends on the bondability of the individual and the individual may not be bondable due to his or her credit rating.

 

WMC Position Oppose

 

This bill will create unnecessary administrative complexities and legal uncertainty for Wisconsin businesses seeking to check the credit history of job applicants.  Federal law simply requires applicants to be notified that a credit history report is part of the job screening process for employment, rather than a limitation on credit history review as proposed in this legislation.

 

• Wisconsin businesses are already burdened by complex employment laws and regulations that fail to conform to federal law that competitors in other states and overseas are not burdened with.  AB 367 will simply add to that burden, further undermining Wisconsin employers’ ability to compete globally.

 

• Many Wisconsin Fair Employment Act (WFEA) claims are dismissed due to lack of merit under current law. However, even the claims that are found to lack merit are costly for employers to defend.  The “substantially related” test is inherently ambiguous and will result in additional costly WFEA litigation.

 

• In the current economic climate, the State Legislature should pass legislation to improve Wisconsin’s business climate, making Wisconsin businesses more competitive globally, not bills making it more costly for Wisconsin employers to do business here.  Resources that are siphoned into needless employment related litigation cannot be invested in job creation and business expansion.

 

For these reasons WMC urges the members of the Wisconsin State Assembly to vote against Assembly Bill 367.

 

 

John Metcalf, Director, Human Resources Policy

501 East Washington Avenue, Madison, WI 53703-2914   P.O. Box 352, Madison, WI 53701-0352

Phone (608) 258-3400  •  Fax (608) 258-3413  •  www.wmc.org