NYC Close to Banning Employers From Using Credit Checks to Screen Job Applicants

Employers should know that there is legislation that could impact hiring practices in New York City.  The New York City Council passed a law that would prohibit the use of credit checks to screen job applicants.  The law currently sits on Mayor de Blasio’s desk awaiting signature and would go into effect 120 days after enactment.

• The term “consumer credit history” means an individual’s credit worthiness, credit standing, credit capacity, or payment history, as directed by: (a) a consumer credit report, (b) credit score, (c) information an employer obtains directly from the individual regarding (1) details about credit accounts, including the individual’s number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limit, prior credit report inquiries, or (2) bankruptcies, judgments or liens.  A consumer credit report shall include any written or other communication of any information by a consumer reporting agency that bears on a consumer’s credit worthiness, credit standing, credit capacity or credit history.
• Except as provided in this subdivision, it shall be unlawful discriminatory practice for an employer, labor organization, employment agency, or agent thereof to request or to use for employment purposes the consumer credit history of an applicant for employment or employee, or otherwise discriminate against an applicant or employee with regard to hiring, compensation, or the terms, conditions or privileges of employment based on the consumer credit history of the applicant or employee.
• This subdivision shall not apply to: (1) an employer, or agent thereof, that is required by state or federal law or regulations or by a self-regulatory organization as defined in section 3(a)(26) of the securities exchange act of 1934, as amended to use an individual’s consumer credit history for employment purposes, (2) persons applying for positions as or employed: (A) as police officers or peace officers, as those terms are defined in subdivisions thirty-three and thirty-four of section 1.20 of the criminal procedure law, respectively, or in a position with a law enforcement or investigative function at the department of investigation, (B) in a position that is subject to background investigation by the department of investigation, provided, however, that the appointing agency may not use consumer credit history information for employment purposes unless the position is an appointed position in which a high degree of public trust, as defined by the commission in rules, has been reposed, (C) in a position in which an employee is required to be bonded under City, state, or federal law, (D) in a position in which an employee is required to possess security clearance under federal law or the law of any state, (E) in a non-clerical position having regular access to trade secrets, intelligence information or national security information, (F) in a position: (i) having signatory authority over third party funds or assets valued at $10,000 or more, or (ii) that involves a fiduciary responsibility to the employer with the authority to enter financial agreements valued at $10,000 or more on behalf of the employer, (G) in a position with regular duties that allow the employee to modify digital security systems established to prevent the unauthorized use of employer’s or client’s networks or databases.
• Except as otherwise provided in this paragraph, it shall be unlawful discriminatory practice for an agency to request or use for licensing or permitting purposes information contained in the consumer credit history of an applicant, licensee or permittee for licensing or permitting purposes
• The subparagraph (1) of this paragraph shall not apply to an agency required by state or federal law or regulations to use an individual’s consumer credit history for licensing or permitting purposes

Supported By WordPress Database Support Services