Mayor Bill De Blasio has signed into law a bill passed by the New York City Council making it unlawful for employers to use an individual’s consumer credit history in making employment decisions. New York City will become the twelfth jurisdiction in the country to prohibit employers from using credit checks to screen job applicants. The law will take effect on September 3, 2015.

Not only does the bill make it unlawful for employers to use an applicant’s credit history when making employment decisions, but it also makes it unlawful for employers to request credit history for employment purposes, unless an exception is met.

The law provides the following exceptions making consideration of credit history lawful:

The amendment to the New York City Human Rights Law regarding credit checks applies to New York City employers of four or more individuals, and is enforceable through the City Commission on Human Rights or by civil action.

New York City employers are advised to evaluate and reassess their practices and procedures regarding employment-related credit checks prior to September 3, 2015.

Employers should:

Paypro’s Applicant Screening Solution is a great option for employers whether screening is undertaken to make better hiring decisions, supporting the transfer of current employees to other areas of the business or meeting specific contract requirements. Please contact our New York office for more information on how Paypro can provide you with a customized online applicant screening process.