Employers Cannot Discriminate against Applicants who have filed for Bankruptcy

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  • #158122
    vlandpr
    Participant

    Bankruptcies are a matter of public record, and my appear on an individual’s credit report. The federal Bankruptcy Act prohibits employers from discriminating against applicants because they have filed for bankruptcy.

Viewing 15 replies - 1 through 15 (of 30 total)
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  • #304936
    financeguy
    Participant

    Employers can discriminate against anyone for whatever reason they want: race, sex, age, credit, etc. Good luck proving any of this if you don't get the job. Especially when there are dozens, if not hundreds, of other applicants who didn't get the job.

    If an employer doesn't want to hire you for whatever reason, and that reason is discriminatory, most likely that employer will not tell you the real reason why you did not get hired. I have asked dozens of possible employers why I didn't get the job, and 99% of the time it is something along these lines:

    “You were very qualified, and it was a very competitive decision, however we chose to go w/ an applicant who was more qualified than you.”

    AUD - 81, BEC - 74, 80, FAR - 82, REG - 81
    Done!

    #304937
    Anonymous
    Inactive

    @financeguy- You said exactly what I was thinking. All employers discriminate; good luck proving it. Perfect example being looking at GPA or school you attended…they'll push that back on you as “finding a more qualified applicant.”

    #304938
    NJCPA2B
    Participant

    financeguy, your statement is incorrect. Federal Law prohibits discrimination against age, gender, nationality, marital status and family status, even bankruptcy issues. In fact, you don't have to answer those questions in an employment application.

    You are correct that employers do discriminate often and make up other excuses. These employers are playing with “fire”.

    Employers have been paying out big money in lawsuits in recent years because they don't know the law well. Their human resources departments are defective in their hiring processes.

    If anyone in this forum believes they have been discriminated against, then they can file a complaint with the appropriate federal agency; for age, the US Equal Employment Opportunity Commission. The EEOC will hear your case and they know very well the tactics that employers use in their discriminating hiring process. They will conduct a formal investigation against ANY employer…….

    BEC=77, FAR=78, REG=73,74,80, AUD=70,69, 84 DONE!

    #304939
    italianCPA
    Participant

    Good luck investigating.

    Unless the hiring manager told the applicant: “We didn't hire you because you are a woman or because you have an accent”, there is usually little ground.

    One and a half year ago, I almost got a job as CFO of the US branch of one of the biggest italian food companies. Went through US CEO, group CFO over the phone. They flew me there (to Italy) to meet the old man, the one whose name is on the food boxes. I first interviewed with the group's HR Director, who asked me how old I am, my marital status, what my wife does, what my parents do.

    Then I went to meet the old guy (the owner), he told me I look very young (I was 32 at the time, but I do look a good 5/6 years younger than my age). The group CFO and the US CEO were my biggest sponsors, the old guy said no because I'm too young. They told me in my face.

    In Italy isn't illegal, but in the US is. And I'm talking about a huge company which everybody knows (here in the US too).

    That's how it is. I probably could have sued, but I didn't want to waste time and money and ruin my name with italian companies that operate in the US (for which I'm likely to work) and be seen as a troublemaker.

    I hired many people too and believe me, if I didn't want to hire the person, I would not hire him/her, whatever the reason was.

    FAR - 7/26/10 - 95
    AUD - 8/10/10 - 88
    BEC - 8/31/10 - 88
    REG - 10/15/10 - 95

    #304940
    NJCPA2B
    Participant

    italianCPA, i'm sorry to hear that you were discriminated against. What they told you is SUPER illegal in this country. In fact you should had filed a claim with the EEOC against the US division of that big company. You are NOT hiring a lawyer and there is no expense to you. The EEOC is budgeted and they conduct their own investigations under their mandate.

    The EEOC knows the law well, and if they find grounds to go forward, then good luck on the employers who think they can “play it smart” against the EEOC by giving “covering” excuses…..

    BEC=77, FAR=78, REG=73,74,80, AUD=70,69, 84 DONE!

    #304941
    financeguy
    Participant

    discrimination happens daily…thousands of times daily, if not tens of thousands. The court of law is what you can prove…it doesn't matter what happened…it matters what you can convince the judge and jury of.

    Anyone out there who thinks a BK will not be damaging to their career because the BK laws says you cannot discriminate against that – I'm sorry, but anyone who thinks that is simply delusional.

    Some people live in an ideal world. Some others live in a realistic world. I live in a realistic world.

    The only way you would even know if discrimination was the reason you didn't get the job is if the employer flat out tells you, which will usually never happen. And then the only way that you could win a lawsuit is if you could prove that discrimination…again, good luck with that.

    It is flat out sad that our society has to come down to litigation over discrimination of not hiring because of a BK. I see no reason why an employer should not be able to discriminate against a BK. A business is out for 1 thing – a profit. An employer should seek the best of the best when it comes to labor, especially when there is an over abundant supply of labor. If an employer feels a BK on a persons record keeps that person out of the category of best of the best, then so be it. It is the employers decision. That is a true free market decision. I see absolutely nothing wrong with it.

    A person has no control over their age, sex, race, and so I can see why discrimination against those things could be unfair. However anything fully in control of a person, such as bankruptcy, I see no reason why an employer should not have the option to discriminate against that.

    AUD - 81, BEC - 74, 80, FAR - 82, REG - 81
    Done!

    #304942
    Onyekaz
    Participant

    NJCPA2B, please be realistic. Discrimination is difficult to prove (if not impossible). Recently, I interviewed for an entry-level Tax Associate position with one of the big firms. Despite my qualifications (First degree in Accounting, Passed 4 parts of the CPA, plus a Masters degree in Taxation). How else could anybody be more qualified? But guess who did not get the job – me. Maybe because I am black and no one else who works there is black?

    Friends encouraged me to sue but I backed away from lawsuit. I am still unemployed and I continue to be undeterred by such experience. You are lucky if it never happened to you and I hope it does not. It is wise, however, to prepare your mind in case of eventuality.

    #304943
    msm3579
    Participant

    Put your self in the hiring shoes.

    You have two people that are equally qualified for the position. They are exactly the same age, race and gender. One has poor credit and recently went through bankruptcy, the other has spotless credit.

    Which one would you pick?

    FAR: Passed 4/12 | BEC: Passed 5/31 | AUD: Passed 7/19 | REG: Passed 8/30

    #304944
    Anonymous
    Inactive

    Actually maybe the one with the BK. They probably need the work and unable to declare BK again anytime soon. They are probably facing rough interviews and being discriminated against. They are probably willing to work for a lower salary and less likely to be hired elsewhere.

    Everyone does not need to be a rock star. Sometimes good enough is perfectly fine.

    #304945
    Idrathergolf
    Participant

    Could no history of bankruptcy be considered a BFOQ of someone in finance/accounting? I would tend to think so.

    If I were a business owner, would I want the financial/tax advice of a person who could not even keep his or her own finances in order? Most definitely not.

    REG: 5/26 - 90hrs (Pass) AUD: 7/1 - 86hrs (Pass)
    BEC: 7/22 - 72hrs (Pass) FAR: 8/31 - 56hrs (Wait)

    #304946
    NJCPA2B
    Participant

    Discrimination is not easy to prove, but if there are reasonable grounds the EEOC will investigate. One of our firm's client was sued and lost an $85,000 settlement on age discrimination. The gentleman 61, that did not get the job was told they selected a better qualified candidate. He filed a complaint with the EEOC based on his beliefs and the company was burned for discriminating. They messed with the wrong guy who was a seasoned professional.

    The number one cause of BK is medical problems. Other reasons are divorce, unemployment and business failure. These people are not bad people and those and some are business risk takers and so on. They are probably better savy than you and I.

    I have a friend, 37yo CPA professional woman who's un-insured younger brother died of brain cancer and ran-up huge medical bills on her account and savings. She then lost her corporate $150K corporate job in NY and is still looking for work. She's behind on her motgage and will probably lose her house ultimately she will have to file BK……

    And therre more stories of good people who CAN NOT control the job market, lost life savings and investments, diseases, or insurance companies that won't pay medical bills……..

    Don't ever think that bad things won't ever happened to you or your family……..you may not always insulate yoursefl good enough….

    BEC=77, FAR=78, REG=73,74,80, AUD=70,69, 84 DONE!

    #304947
    msm3579
    Participant

    There are so many stories, and many reasons people get in a bind. I myself in my youth got into financial trouble. It took me the next 7 years to pay it off. To me a debt is something owed. I would not want a CPA that does not take ownership of their personal finances, or as a manager want to hire someone with out financial discipline.

    Also if I remember right financial pressure is one of the sides to the fraud triangle.

    FAR: Passed 4/12 | BEC: Passed 5/31 | AUD: Passed 7/19 | REG: Passed 8/30

    #304948
    NJCPA2B
    Participant

    I think all the state boards of accountancy/NASBA do not even take into account BK (before or after CPA licensing) as a licensing requirement. I think doing so would violate federal law.

    BEC=77, FAR=78, REG=73,74,80, AUD=70,69, 84 DONE!

    #304949
    msm3579
    Participant

    An article I found puts it plainly: “While Section 525 of the U.S. Bankruptcy Code prohibits discrimination against anyone solely on the basis of insolvency, employers have a right to selectively screen individuals before hiring them, and it is difficult to prove discrimination. Their concern is a legitimate one: Individuals working in financial, government, high security, or retail occupations are more at risk for embezzlement, bribery, fraud, or robbery if they have personal money problems. Business owners may feel that the temptation to steal company funds or to become involved in fraud is just too great for individuals undergoing financial hardship.”

    Which I total agree with!

    FAR: Passed 4/12 | BEC: Passed 5/31 | AUD: Passed 7/19 | REG: Passed 8/30

    #304950
    Anonymous
    Inactive

    I kinda agree with the general comments here that it is against the law to discriminate based on bankruptcy, However, it can and will prevent you from getting a government job in some areas where I work due to the sensitivity of information. There are jobs in the building where I work that required secret or top secret clearances to get and I am going to tell you that if you have a bankruptcy on your record you will not able to obtain the required clearances. Also, every applican has to pass a non-sensitive national background check and credit check prior to being hired. With the state of the economy, it would behove everyone to manage the finances appropriately. It hard enough to get a job without shooting yourself in the foot.

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