New York City considering pre-employment credit check ban

once again introduced legislation that would prevent city employers from utilizing credit checks in determining whether a candidate is a good fit for a job. Jobs that require credit checks under state or federal law would, of course, be exempt from the new law, should it pass. Employers often utilize credit checks in determining whether a candidate would be a responsible employee, and so long as the company is not violating the Fair Credit Reporting Act, doing so is legal. (However, ten states — including the nearby Connecticut, Vermont and Maryland — have existing legislation that limits state employers’ use of credit checks in the hiring process.) The ban would prevent employers and employment agencies from conducting personal credit checks, in order to prevent discrimination based on race and/or economic disadvantage. A study by Demos showed that one in 10 people who would otherwise be qualified for a position are told they cannot be hired because of a bad credit report; however, the study also showed that, overwhelmingly, bad credit is often due to factors outside a person’s control, such as the faltering economy, crippling student loans and medical debt. Student debt is shown to disproportionately affect minority students, and medical debt is often due to an inability to maintain health insurance, which can be difficult if one cannot find work. “We want New Yorkers who apply for jobs or promotions to be judged by their qualifications and experience for the position, and not by whether they have enough money to pay their bills,” said Councilmember and Chief Sponsor Brad Lander. In addition, studies have found that white households are more likely to consider their credit scores “good,” while black families are more likely to describe theirs as “fair” or “poor.” By banning credit checks, the city could help reduce racial discrimination in employment, as well as assist those who are unemployed simply due to tough times, and not a lack of responsibility. The Council seats 51 members, and 40 of them are sponsors of the bill. Mayor Bill de Blasio has also been supportive of the legislation, at least in theory, but has not actually endorsed the bill. Similar legislation was introduced in 2013, but did not pass.]]>

You May Also Like

Check out these additional posts from Mind Your Business.

MYB featured in Capital at Play Magazine

 Mind Your Business (MYB) was honored to be featured in Capital at Play Magazine’s August Issue.  In the article Karen Caruso, Founder/CEO of MYB, discusses how she got her start in the background screening industry and her experience with government contracting. Karen says, “Most people in WNC are surprised to learn that a company like…
Read More

MYB Included on Inc. 5000 List for Third Consecutive Year

Despite a year filled with challenges due to COVID-19, we are thrilled to announce Inc. magazine revealed that Mind Your Business, Inc. is No. 2831 on its annual Inc. 5000 list. The list is the most prestigious ranking of the nation’s fastest-growing private companies. The annual compilation represents a unique look at the most successful…
Read More

MYB Welcomes John Lawrence as Chief Revenue Officer

This month, MYB added background screening industry sales and marketing veteran, John Lawrence to our team. John will serve as Chief Revenue Officer and manage all sales, marketing, and customer success personnel and activities. John was most recently Chief Marketing Officer for investigative data provider, Tracers Information Specialists, Inc. (Tracers). Prior to that, John served…
Read More

Quality and Precise Results, On Time!

Let us know about your screening needs to get a custom quote. We work with businesses big and small as well as the government. Which means we have a package of solutions for your organization as well.