On May 7, 2015, New York City Mayor Bill de Blasio signed a law that prohibits businesses from taking any employment-related action against an individual based on credit information. The law takes effect on September 7, 2015 but preparations should begin now.
The law makes it illegal to request or use for employment-related purposes the credit report of any applicant or employee. It expressly prohibits using such credit information in connection with hiring, compensation, or terms and conditions of employment.
The credit information covered by the amendment includes consumer credit reports, credit score or details obtained from the individual regarding their credit accounts including the number of credit accounts, late or missed payments, items in collection, credit limits, prior credit report inquiries, as well as bankruptcies, judgments or liens.
There are also some limited exceptions, such as:
Employers subject to the New York City Human Rights Law should first evaluate whether their company as a whole or specific positions are excluded from coverage of this new law. If no exclusion applies, affirmative steps should be taken to ensure that their written and non-written policies do not run afoul of this new law.
Best Practices for Compliance with the New Law:
|Dougherty, Anthony D. Partner, CFE||Partner, CFE||212.216.8099|
|Drogin, Laurent S. Partner||Partner||212.216.8016|
|Feder, Hagit Senior Compliance Administrator, CFE||Senior Compliance Administrator, CFE||212.216.1109|
|Kleinmann, David N. Partner||Partner||212.216.1115|
|Steer, Richard L. Partner||Partner||212.216.8070|
|Toevs Carolan, Tara Counsel||Counsel||212.216.8007|
|Zagorsky, Arthur Partner||Partner||212.216.8030|