Final answer:
Companies can set a maximum % of an applicant's earned income based on their credit score, arbitrary company policies, legal regulations, or adjusted according to the job position.
Step-by-step explanation:
Companies may set a maximum percentage of an applicant's earned income based on multiple factors. These factors can include the applicant's credit score, arbitrary company policies, legal regulations, or adjusting the percentage according to the job position.
For example, some employers may set a maximum % of an applicant's earned income based on their credit score. They may view a low credit score as a potential risk for financial instability, which could affect an employee's ability to handle financial responsibilities.
In other cases, companies may have arbitrary policies that define a maximum percentage of earned income, regardless of credit score or other factors. These policies may be based on internal calculations or industry standards.
Additionally, there may be laws in place that determine a maximum percentage of income that can be taken as deductions or garnishments, which would affect how companies set their maximum % of an applicant's earned income.
Finally, the maximum percentage may also be adjusted based on the job position. Certain positions may require more financial responsibility or may come with higher salary levels, warranting a different maximum percentage.