Honolulu settles rare credit history discrimination case

The Honolulu Police Department (HPD) has agreed to pay $95,860 and provide other nonmonetary relief to resolve a credit history discrimination complaint, according to a recent announcement by the Hawaii Civil Rights Commission (HCRC). The complaint appears to be only the second of its kind in Hawaii filed under a state law passed a decade ago.

Reinstatement denied based on credit history

According to the HCRC's announcement, an individual who previously worked for the HPD requested reinstatement. Following its 2016 hiring policy, the department considered the applicant's financial background, including credit history and credit reports.

The HPD allegedly rejected the applicant because his credit history and credit report were found to be unsuitable. He complained to the HCRC, which found reasonable cause to believe the department had violated the state law prohibiting discrimination based on credit history or credit reports.

The HCRC's announcement didn't identify the employee or what position he was seeking with the HPD. As part of the settlement, the department didn't admit fault, but did agree to unspecified changes to its hiring policy.

The commission's release suggests the HPD will no longer consider credit history as part of its hiring practices, at least for certain positions. Specifically, the announcement quoted HCRC Executive Director William D. Hoshijo as saying: