Prohibits the use of consumer credit history in hiring, employment and licensing determinations.
Summary
Bill A01316 seeks to amend the General Business Law of New York to prohibit employers, labor organizations, and employment agencies from using an individual's consumer credit history in employment decisions. The bill defines 'consumer credit history' to include creditworthiness, credit standing, credit capacity, and payment history, and establishes that it is unlawful for these entities to request or use such information for hiring, compensation, or other employment-related decisions. There are specific exemptions for certain positions, such as peace officers and those requiring security clearance or bonding.
Impact
If enacted, this bill would significantly alter the landscape of employment practices in New York by limiting the ability of employers to consider credit history in their hiring processes. It would amend existing laws to prevent discrimination based on credit history, while still allowing for certain exceptions as outlined in the bill. This could lead to increased job opportunities for individuals with poor credit histories, thereby impacting the overall employment market and potentially reducing barriers for job seekers.
Sentiment
The sentiment surrounding Bill A01316 appears to be generally favorable among committee members, as evidenced by the positive votes in the Assembly Consumer Affairs and Protection Committee and the Codes Committee. The discussions indicate a recognition of the potential discriminatory impact of using credit history in employment decisions, although there are some concerns regarding the exceptions outlined in the bill.
Contention
Notable points of contention include the exemptions for certain job categories, such as law enforcement and positions requiring security clearances, which some argue may undermine the bill's intent to protect individuals from discrimination based on credit history. There may also be concerns from employers regarding the limitations on their ability to assess potential employees' financial responsibility through credit history.
Requires entities that access a consumer's consumer credit report to notify such consumer of their right to obtain a security freeze, in addition to other information necessary to place, temporarily lift or permanently lift such security freeze; prohibits notices to consumers of their right to obtain a security freeze from containing advertising for paid services.