Private Employers Can Discriminate Against Applicants Who Filed Bankruptcy
Tap to Call - (877) 250-8242

Appeals court rules employers can discriminate against bankrupt applicants

March 11, 2011

Share this article

SHARE

Appeals court rules employers can discriminate against bankrupt applicants

The 5th Circuit Court of Appeals recently issued a unanimous ruling that upholds an employer's right to discriminate in hiring against an applicant who has a bankruptcy filing in his or her credit history.

Shani Burnett first filed her discrimination case in 2008, claiming she was offered a job as a paralegal at a Houston law firm, but that the offer was rescinded when her prospective employers discovered that she had recently filed for Chapter 13 bankruptcy, according to Reuters. The appeals court ruled that if Burnett had been applying for a public job, she may have had grounds for her discrimination claim, but since she was seeking employment with a private company, its hiring rule was not illegal.

"Overall, this is unfortunate for millions of bankrupt Americans who are very qualified people," Burnett's attorney said of the ruling. "People should be evaluated on their talents."

The news source reports that a bankruptcy attorney at the National Consumer Law Center in Boston said that employers are increasingly using credit checks in hiring, and that this has been the cause of increasingly frequent litigation. A Credit.com survey revealed that most Americans would support a ban on credit checks as part of background screening for employment.


Back to Newspaper Home


Tap to Call - (877) 250-8242

Copyright © 2017 MH Sub I, LLC. All rights reserved. ® Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state.Your use of this website constitutes acceptance of the "Terms & Conditions", "Supplemental Terms", "Privacy Policy" and "Cookie Policy."