Legal Question in Bankruptcy in California
Can an employer decide not to hire you based on a previous bankruptcy?
Does it typically happen? I applied for a sales job in a store and I'd work the cash register. I'm educated and worked as a teacher and in high tech before but am struggling to find work. So, should I just not apply as a sales clerk if I work the register?
2 Answers from Attorneys
Lots of people are struggling to find work. Employers make decisions on any number of factors, legal and illegal. It's not clear that it's illegal to discriminate based on an applicant's credit history, although it might be unfair or even counterproductive for the employer to do so. Even if an employer uses an illegal hiring criterion, they can always claim some non-illegal reason. Employers are supposed to tell you if a credit report was obtained or used, but in my experience usually they don't. If they do, you have a right to a free copy of the report. I would just keep looking and don't limit your job search. You never know.
It is illegal to discriminate on the basis of a bankruptcy filing. Some jobs do require good credit history and usually the people who file for bankruptcy have bad credit. The employer is unlikely to deny employment on the basis of the bankruptcy because it is illegal but the employer can find some other legal reason to deny employment, including bad credit if that is a reasonable requirement of the position. Some jobs require bonding by an insurance company and bad credit, including a bankruptcy filing, could disqualify someone from being able to be bonded which would be a legitimate reason for denial of the job. A job as a sales clerk should not require good credit and denial of such a job because the person has filed for bankruptcy is not a legitimate reason for denial of the job. There are also California laws that prohibit arbitrary discrimination. Therefore, if you are told that you were not hired because of the bankruptcy you can start by filing a complaint with the California Fair Employment and Housing Department which will investigate and bring a complaint against the employer on your behalf.
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