The purpose of this Training and Employment Guidance Letter (TEGL) is to provide information to the public workforce system and other entities (including the "covered entities" listed above) that receive federal financial assistance to operate job banks, about the use of credit information to exclude, screen, or select applicants for employment and to provide tools to educate employers about the practical and legal drawbacks of this employment practice. This guidance is being issued by the Employment and Training Administration (ETA), in conjunction with the Civil Rights Center (CRC).

This TEGL is accompanied by Training and Employment Notice (TEN) number 12-14: Promising Practices and Resources for Addressing Long-Term Unemployment,¹ which outlines proactive steps that a number of employers, employer organizations, and workforce agencies have implemented or pledged to implement to address the unique barriers to employment facing many of the long-term unemployed. One of these barriers, the practice of using credit information to exclude applicants from employment, is the subject of this TEGL. Long-term unemployed individuals may be more likely than employed or short-term unemployed individuals to fall into debt due to prolonged periods when they lack sufficient income or employer-sponsored benefits such as health insurance to meet basic needs. As a result, these long-term unemployed individuals may be more likely to be negatively impacted by these credit screening practices.