NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3288
SPONSOR: Sepulveda (MS) 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 OR GENERAL IDEA OF BILL:
To grow the economy by prohibiting the use of credit history as a crite-
rion for employment decisions.
SUMMARY OF SPECIFIC 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.
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.
PRIOR LEGISLATIVE HISTORY:
2016: Referred to consumer affairs and protection
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.
STATE OF NEW YORK
________________________________________________________________________
3288
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
___________
Introduced by M. of A. SEPULVEDA, RIVERA, SOLAGES, BICHOTTE, MOSLEY,
RODRIGUEZ, STECK, COLTON, KEARNS, HOOPER, JAFFEE, BLAKE, JEAN-PIERRE
-- Multi-Sponsored by -- M. of A. HYNDMAN, MAGEE, RICHARDSON, SIMON --
read once and referred to the Committee on Consumer Affairs and
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 Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 380-bb to read as follows:
3 § 380-bb. Discrimination on the basis of credit history. Notwith-
4 standing any contrary provision of law, no employer shall use or request
5 information in the credit history of a job applicant or employee in
6 connection with or as a criterion for employment decisions related to
7 hiring, termination, promotion, demotion, discipline, compensation, or
8 the terms, conditions, or privileges of employment unless the employer
9 is mandated by this article or federal law to use individual credit
10 history for employment purposes, or the employer has a bona fide purpose
11 for requesting or using information in the credit history report that is
12 substantially related to the employee's current or potential job and the
13 employer complies with the notice and consent requirements of the Feder-
14 al Fair Credit Reporting Act.
15 § 2. This act shall take effect on the first of January next succeed-
16 ing 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.
LBD02187-01-7
