A bill was recently passed in the city of New York that may prohibit discrimination based on consumer credit history. The term consumer credit history is defined in the bill as the individual’s credit worthiness, credit standing, credit capacity, or payment history as indicated by a consumer credit report, credit score, or information the employer requests from employee.
If bill is passed, the city’s Human Rights Law will be amended to limit credit checks in employment. Positions that require security, however, may be exempt. Employers and employment agencies may continue to request credit history for the following:
- when required by state, federal law, regulations, or self-regulatory organization
- law enforcement
- positions where employees are required to be bonded under City, state or federal law
- positions that require security clearance under federal law or the law of any state
- non-clerical positions that have access to trade secrets, intelligence information or national security information
- positions with authority over third party funds or assets valued at $10,000, or with authority to enter financial agreements valued at $10,000 or more on behalf of the employer
- positions where digital security systems may be modified
Employers and employment agencies may also request consumer credit history pursuant to subpoena, court order, or law enforcement investigation.
Compliance Poster Company will continue to follow legislation, so make sure to stay tune!