Report on the Stop Credit Discrimination in Employment Act

SUMMARY

The Civil Rights Committee issued a report supporting the Stop Credit Discrimination in Employment Act. This legislation, which was passed by the City Council on Thursday, would prohibit employers from using personal credit history in hiring and therefore would eliminate a serious barrier to economic security for many New Yorkers. There are a number of exceptions, including where 1) inquiries into an individual’s consumer credit history are required by state or federal law or by the rules of a securities licensing organization; 2) the employee has access to trade secrets, classified information, or has signing authority over assets valued at $10,000 or more; or 3) the employee is a peace officer or high level appointee at a public agency. The Committee supported the legislation because research has shown that there is no correlation between damaged credit and poor job performance or criminal behavior, yet because nearly half of U.S. employers conduct credit checks as a condition of employment on potential new hires, credit reports are increasingly being used to unfairly screen out job applicants. In addition, screening can lead to discrimination against people of color.

BILL INFORMATION

Int. 0261-2014 – prohibits employment discrimination based on consumer credit history.

OUTCOME

Signed by the Mayor (2015/037) – May 6, 2015