New York City Prohibits Employers from Considering the Credit History of an Employee or Applicant


New York City recently passed the “Stop Credit Discrimination in Employment Act,” a law that prohibits discrimination based on an employee’s or job applicant’s consumer credit history.  The law is an amendment to the New York City Human Rights Law.

Under the Act, New York City employers, labor organizations and employment agencies are prohibited from using or requesting a job applicant’s or employee’s consumer credit history for employment purposes.  Those constituents are also prohibited from discriminating against an applicant or current employee based on their consumer credit history.  The discrimination prohibition applies to hiring, compensation, and the terms, conditions or privileges of employment.

The law provides several exceptions, including for law enforcement, other professions involving a high level of public trust or access to sensitive information, and employers who conduct credit history checks pursuant to state or federal laws or regulations.

“Consumer credit history” is defined in the Act as an individual’s credit worthiness, credit standing, credit capacity or payment history, as indicated by (1) a consumer credit report, (2) credit score, or (3) other information an employer obtains directly from the individual regarding details about credit accounts.

The Act is set to go into effect on September 3, 2015.  For more information on the new law and how it applies to your business, please contact Connell Foley’s labor and employment law attorneys.