Employment Update – NYC Mayor Signs Credit Check Bill Banning Most NYC Employers From Using Credit Checks

Last week, NYC Mayor de Blasio signed legislation (NYC Int. 0261-A-2014) that amends the NYC Human Rights Law to make it an unlawful discriminatory practice for employers to request or consider the credit history of a prospective or current employee when making employment decisions.  The law goes into effect on September 3, 2015.

As we detailed in our prior alert, NYC’s new law defines “credit history” broadly and includes a consumer credit report or credit score, in addition to information directly obtained from the employee or applicant regarding his or her: (1) number of credit accounts, late or missed payments, charge-off debts, items in collections, credit limit, prior credit report inquiries, or (2) bankruptcies, judgments or liens.

The law, however, includes certain exceptions and will not apply to:

• Employers who are required to consider credit history for employment purposes by state or federal law or regulation or by a self-regulatory organization (as defined by the Securities and Exchange Act of 1934);
• Some public safety positions (e.g. certain police officers, peace officers, Department of Investigation personnel and other individuals who are subject to a background investigation by the Department);
• Positions requiring bonding under federal, state or city law (e.g. positions where employee handles cash, securities or other valuables);
• Positions which require security clearance under federal or state law;
• Non-clerical positions with regular access to trade secrets, intelligence information or national security information;

Read Full Article Here: http://www.mondaq.com/unitedstates/x/397228/employee+rights+labour+relations/NYC+Mayor+Signs+Credit+Check+Bill+Banning+Most+NYC+Employers+From+Using+Credit+Checks