NYC Mayor Signs Law Banning Use of Credit History As Basis for Employment Decisions

Basing an employment decision on a person’s credit history will mostly be a relic of the past in New York City come this September. That’s when a new law signed last week by Mayor Bill DeBlasio (D) takes effect banning employers from using that factor to make employment decisions in most jobs.

The amendment to the city’s Human Rights Law makes it an unlawful discriminatory practice to base any employment decision on an individual’s credit history.

Credit history includes consumer credit reports and credit scores, in addition to information directly obtained from the applicant or employee regarding his or her (i) prior bankruptcies, judgments, or liens, or (ii) number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limit, or prior credit report inquiries.

The law still allows some use of credit histories for some jobs, including police officers, jobs requiring bonding under federal, state, or local law, or jobs requiring security clearances.

To read the text of the law, go here.

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