What's happening
This bill prohibits employers in New York from using or requesting credit history information for most employment decisions, with certain exceptions.
Why it matters
Protects applicants and employees with poor or limited credit history. by preventing most employers from considering credit reports when making decisions about hiring, firing, promotions, or discipline, helping to reduce barriers for those who may have suffered financial setbacks unrelated to their job performance.
Limits employer access to sensitive personal financial information. , reducing the risk of discrimination based on private matters that may not reflect a person’s work ethic or capabilities.
Includes important exceptions for roles where credit history is relevant. , allowing employers to access such information only if required by law or if directly related to the job (e.g., positions with significant financial responsibility), provided federal notice and consent rules are followed—ensuring that legitimate business needs are balanced with employee protections.
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Who cares
Headline styles
Ban Credit Checks for Jobs
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to consumer protection
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2241
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
Introduced by Sens. SANDERS, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to prohibiting an employer from discriminating on the basis of credit history
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 380-bb to read as follows:
§ 380-bb. Discrimination on the basis of credit history. Notwithstanding any contrary provision of law, no employer shall use or request information in the credit history of a job applicant or employee in connection with or as a criterion for employment decisions related to hiring, termination, promotion, demotion, discipline, compensation, or the terms, conditions, or privileges of employment unless the employer is mandated by this article or federal law to use individual credit history for employment purposes, or the employer has a bona fide purpose for requesting or using information in the credit history report that is substantially related to the employee's current or potential job and the employer complies with the notice and consent requirements of the Federal Fair Credit Reporting Act.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05445-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to prohibiting an employer from discriminating on the basis of credit history
Purpose
To grow the economy by prohibiting the use of credit history as a crite- rion for employment decisions.
Summary of provisions
Section 1 amends the general business law by adding a new section 380-BB providing no employer shall use or request information in the credit history of a job applicant or employee in connection with or as a crite- rion for employment decisions related to hiring, termination, promotion, demotion, discipline or compensation unless mandated by federal law.
Section 2 provides the act shall take effect on the first of January next succeeding the date on which it shall become a law.
Existing law
None
Justification
According to the New York City Council, employers often use consumer credit information to make hiring decisions, despite the fact that there is little evidence linking an employee's credit score or credit worthi- ness to job performance or trustworthiness. Credit checks may adversely affect those who have fallen behind on student loan payments, medical bills or have taken on other forms of consumer debt. Further, the use of credit checks for employment purposes has been shown to have a discrimi- natory impact on low-income communities and communities of color. They also have a disparate impact on women and victims of domestic violence.
Legislative history
02/22/16 REFERRED TO CONSUMER PROTECTION
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.