New York City Employers Banned from Running
Credit Checks on Job Applicants
Employers no longer allowed to consider
credit history during hiring process for
many positions
Recent changes to New York labor laws have
imposed new limitations upon an employer’s
ability to consider the credit history of
job applicants during the hiring process.
While many employers consider an applicant’s
credit history as a sign of character, the
use of this data has long been viewed as
detrimental by the state of New York. The
recent alterations to the law clearly
reflect that philosophy.
After carefully reviewing the new
limitations imposed by the changes to the
law, the New York employment law attorneys
at Hepworth, Gershbaum & Roth, PLLC expect
the new limitations to impact employees and
employers alike.
What does this mean for job applicants?
Job
applicants may experience the greatest
benefit from the changes, especially those
with limited or unfavorable credit
histories. When such things cannot be
considered, an applicant may land a position
he or she may have otherwise been passed
over for.
On the other
side of the coin, there may be negative
ramifications for applicants with strong
credit histories. When all things are equal
amongst applicants, other than credit
history, those with strong credit may lose
the differentiator they need to land the
job.
What does this mean for employers?
Many employers, especially those who have
not regularly consider credit histories of
applicants, may see little to no impact
resulting from the ban. Employers that place
value on an applicant’s credit information
must alter their procedures and policies
regarding the use of such data.
Unfortunately, adherence to these
limitations is not always as clear as one
might think, especially for organizations
filling positions that qualify for an
exemption from the new regulations.
Determining whether or not an applicant’s
credit history can be considered may involve
discussions with legal experts or
conversations directly with the Department
of Labor.
Navigating the gray areas
The new laws do identify specific instances
in which an employer may use the results of
a credit check while considering an
applicant for employment. In many cases,
these situations involve applications
attempting to gain employment with a public
body or governmental organization.
Other cases involve less clear rules. The
laws allow employers to conduct credit
checks on applicants for positions
involving:
-
Responsibility over another party’s
funds,
-
Security requirements, including those
imposed by a national securities
exchange, registered securities
association, or a registered clearing
agency
-
Access to classified company data
-
Required security clearances
While these rules may seem to be clearly
defined at first glance, the do leave much
to the interpretation of employers. For
example, one employer may find the
consideration of a credit check for a
financial planner an allowable step under
these new laws. Other organizations may view
the process differently and avoid the use of
credit data during the hiring process of the
same or similar positions.
In the end, the Department of Labor has the
final say over situations in which the use
of credit information is allowable.
Learn more about New York credit check laws
during a free consultation with one of our
experienced employment lawyers
At Hepworth,
Gershbaum & Roth, PLLC our
New York employment law attorneys
are committed to maintaining an up-to-date
knowledge of all state and federal labor
laws. Our attorneys are also dedicated to
helping clients understand the impact
changes to the law may have on their own
unique situations. If you have questions
regarding the impact the new laws may have
on your career, it may be helpful to speak
to an attorney. To schedule a free
consultation with one of our New York
employment lawyers,
contact us online
or call 212-545-1199.
|
CONTACT US
|
Contact an employment law
attorney in New York today
for a free initial
consultation and determine
whether you have a case. For
a free initial consultation,
you can contact us online or
by phone.
|
CALL US
TODAY!
212-545-1199
|
|
|
|
|