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New York City Prohibits Use of Credit Reports for Employment Purposes

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Last week, the New York City Council passed a bill that makes it unlawful for employers to request or use a job applicant’s credit history for employment purposes as part of their background screening practices.

Intro Bill 261-A amends the City’s Human Rights Law to make it an unlawful discriminatory practice for an employer to use an individual’s consumer credit history in making employment decisions. The bill is expected to be signed by Mayor Bill DeBlasio and will be effective 120 days following approval.

The City Council created a limited set of exemptions for sensitive positions (see below), however it’s worth noting that these exemptions are much more narrow than those provided in similar state laws. (more…)


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