State Legislature Extends Same Protections Granted by New York City
In recent years, it has become common practice among many employers to require that a job applicant provide a copy of a recent credit report as a part of the hiring process. Under an amendment to the state’s General Business Law, signed by Governor Hochul, the use of such information is now specifically prohibited, except for certain limited circumstances.
Under the amendment, which extends the protections afforded by the New York City ordinance to the state of New York, consumer credit history cannot be considered when making an employment decision. Consumer credit history is defined to include credit reports, credit scores and any details about credit accounts, bankruptcies, judgments or liens. Such information will be considered an act of discrimination.
The specific exemptions include:
- Individuals seeking employment as law enforcement or peace officers
- Persons applying for jobs with a state agency
- Individuals applying for jobs that require a bond
- Individuals who require a security clearance for employment
- Workers who regularly have access to intelligence information
- Employees whose job responsibilities include significant financial concerns
How Does This Law Affect New York Employers?
The law specifically states that an employer may not use consumer credit history when making decisions about hiring or compensating employees, or with respect to any of the terms, conditions or privileges of employment. Employers should abstain from using consumer credit history in any way without first consulting with legal counsel.
Let Stephen Hans & Associates Protect Your Rights with Respect to Your Employees
At Stephen Hans & Associates, we have successfully advised and represented many New York City employers for years, helping them meet employment law requirements and protecting their rights in employment litigation, including hiring and termination matters. Susan Lacerte, executive director of the Queens Botanical Garden has lauded us for our “dedication, knowledge and experience” and for helping the Botanical Gardens “successfully resolve difficult legal issues with [our] talent, negotiating skills, personal care and attention.”
Our experienced attorneys are glad to answer your questions and provide legal advice. Our offices are conveniently located in Long Island City with easy access from Manhattan.