Weprin, Cook, Barron, Gibson, Aubry, Maisel, Robinson, Hooper, Rivera P
MLTSPNSR
Brennan, Burling, Camara, Colton, Gabryszak
Amd S296, Exec L; amd SS380-b & 380-c, Gen Bus L
Prohibits the use of an employee's or prospective employee's consumer credit report in making employment decisions, except in certain job related instances.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6672
SPONSOR: Stevenson TITLE OF BILL: An act to amend the executive law and the general
business law, in relation to prohibiting discrimination in employment
decisions based on consumer credit reports
PURPOSE:
The purpose of this bill is to prohibit or severely limit the ability of
an employer to use a consumer credit report in its decision making proc-
ess to hire, terminate, promote or discipline an employee or possible
employee.
SUMMARY OF PROVISIONS:
Section 1: Amends Executive Law section 296 to prohibit or limit the
ability of an employer to use consumer credit reports or information
included in such reports for decisions related to hiring, terminating,
promoting or disciplining employees or potential employees. An employer
may use such information if the position directly relates to or has
access to money or confidential personal information, or is a position
in court administration or with a law enforcement agency. If an employer
requests a consumer report for such sensitive positions that have access
to money or confidential information, the employee or possible employee
must sign an authorization of consent form authorizing such use.
Violation of this law shall be an unlawful discriminatory practice
punishable under the Executive Law.
Section 2 and 3: Amends General Business Law section 380-b and 380-c to
expand the provisions of the Fair Credit Reporting Act to include
provisions similar to the ones provided above in bill section 1 with
regard to the prohibition or limited use consumer credit reports.
JUSTIFICATION:
The purpose of this bill is to limit an employer's access to certain
consumer credit reports and information in connection with employment,
so that those persons whose credit has been negatively affected by the
current economic climate may be eligible for jobs. This change to the
law will exclude those jobs that involve access to funds or negotiable
instruments or directly involves financial oversight or responsibility.
With the current bad economic climate, many qualified persons, who
through no fault of their own, have low credit scores because they have
not been able to find work for months or years at a time. Further,
these individuals are needlessly being disqualified for jobs that they
desperately need and which they are clearly qualified for. However, the
consumer credit reports put an undeserved questionable mark on individ-
uals who otherwise would be qualified for employment.
LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
180th day after it shall have become law.
STATE OF NEW YORK
________________________________________________________________________
6672
2011-2012 Regular Sessions
IN ASSEMBLY
March 24, 2011
___________
Introduced by M. of A. STEVENSON -- read once and referred to the
Committee on Consumer Affairs and Protection
AN ACT to amend the executive law and the general business law, in
relation to prohibiting discrimination in employment decisions based
on consumer credit reports
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 296 of the executive law is amended by adding a new
2 subdivision 19-a to read as follows:
3 19-a. (a) Except as provided in paragraph (b) of this subdivision, it
4 shall be an unlawful discriminatory practice of any employer, labor
5 organization, employment agency or licensing agency, hereinafter collec-
6 tively referred to in this section as "employer", to use a consumer
7 credit report, as defined in subdivision (1) of section three hundred
8 eighty-a of the general business law, as a criterion in employment deci-
9 sions related to hiring, termination, promotion or discipline.
10 (b) An employer may request and use a consumer credit report as part
11 of its decision-making process to hire, terminate, promote or discipline
12 an employee or prospective employee when the information contained in
13 such report is: (i) substantially job-related to the position, which may
14 include, but not be limited to access to money, other assets or confi-
15 dential information; or (ii) used with regard to a managerial position,
16 a position in the office of court administration, a position with a law
17 enforcement agency or a position for which the information contained in
18 such report is required to be disclosed or obtained by the employer.
19 (c) Before an employer may request or use a consumer credit report
20 pursuant to paragraph (b) of this subdivision, the employee or prospec-
21 tive employee shall be given and sign an authorization of consent form
22 which explicitly states the specific purpose, use and limitation of use
23 of such report as it pertains to the employment position sought.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05262-01-1
A. 6672 2
1 § 2. Paragraph 3 of subdivision (a) of section 380-b of the general
2 business law, as amended by chapter 797 of the laws of 1984, is amended
3 to read as follows:
4 (3) To a person whom it has reason to believe intends to use the
5 information (i) in connection with a credit transaction involving the
6 consumer on whom the information is to be furnished and involving the
7 extension of credit to, or review or collection of an account of, the
8 consumer, or (ii) for employment purposes in accordance with the
9 provisions of subdivision (e) of this section, or (iii) in connection
10 with the underwriting of insurance involving the consumer, or (iv) in
11 connection with a determination of the consumer's eligibility for a
12 license or other benefit granted by a governmental instrumentality
13 required by law to consider an applicant's financial responsibility or
14 status, or (v) to a person in connection with a business transaction
15 involving the consumer where the user has a legitimate business need for
16 such information, or (vi) in connection with the rental or lease of a
17 residence.
18 § 3. Section 380-b of the general business law is amended by adding a
19 new subdivision (e) to read as follows:
20 (e) No employer, as referred to in subdivision nineteen-a of section
21 two hundred ninety-six of the executive law, shall request or use a
22 consumer credit report in connection with its decision-making process to
23 hire, terminate, promote or discipline an employee or prospective
24 employee unless it is utilized pursuant to such subdivision.
25 § 4. Subdivision (d) of section 380-c of the general business law, as
26 added by chapter 867 of the laws of 1977, is amended to read as follows:
27 (d) If a person applying for credit, insurance, or employment refuses
28 to authorize the procurement or preparation of an investigative consumer
29 report, the prospective creditor, insurer or employer may decline to
30 grant credit, insurance or employment on the grounds that the applicant
31 refused to execute such authorization; provided that an employer shall
32 not determine to hire, terminate, promote or discipline an employee or
33 prospective employee based on the grounds that an employee or prospec-
34 tive employee refuses to authorize the procurement or preparation of a
35 consumer credit report to which the employer is not entitled pursuant to
36 subdivision (e) of section three hundred eighty-b of this article.
37 § 4. This act shall take effect on the one hundred eightieth day after
38 it shall have become a law.
