STATE OF NEW YORK
________________________________________________________________________
2372
2015-2016 Regular Sessions
IN ASSEMBLY
January 16, 2015
___________
Introduced by M. of A. DINOWITZ, WRIGHT, ROSENTHAL, CRESPO, SKOUFIS,
BUCHWALD, WEPRIN, MILLER, RODRIGUEZ, OTIS, ABINANTI -- Multi-Sponsored
by -- M. of A. BRENNAN, CERETTO, HIKIND, JAFFEE, SOLAGES -- read once
and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law and the labor law, in relation
to the use of consumer credit reports for employment decisions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "credit privacy in employment act".
3 § 2. Paragraph 3 of subdivision (a) of section 380-b of the general
4 business law, as amended by chapter 797 of the laws of 1984, is amended
5 to read as follows:
6 (3) To a person whom it has reason to believe intends to use the
7 information (i) in connection with a credit transaction involving the
8 consumer on whom the information is to be furnished and involving the
9 extension of credit to, or review or collection of an account of, the
10 consumer, or (ii) for employment purposes, subject to the provisions of
11 section three hundred eighty-v of this article or (iii) in connection
12 with the underwriting of insurance involving the consumer, or (iv) in
13 connection with a determination of the consumer's eligibility for a
14 license or other benefit granted by a governmental instrumentality
15 required by law to consider an applicant's financial responsibility or
16 status, or (v) to a person in connection with a business transaction
17 involving the consumer where the user has a legitimate business need for
18 such information, or (vi) in connection with the rental or lease of a
19 residence.
20 § 3. Section 380-m of the general business law, as amended by chapter
21 279 of the laws of 2008, is amended to read as follows:
22 § 380-m. Civil liability for negligent noncompliance. Any consumer
23 reporting agency or user of information who or which is negligent in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01829-03-5
A. 2372 2
1 failing to comply with any requirement imposed under this article, other
2 than a violation of section three hundred eighty-t or three hundred
3 eighty-v of this article, with respect to any consumer is liable to that
4 consumer in an amount equal to the sum of:
5 (a) Any actual damages sustained by the consumer as a result of the
6 failure;
7 (b) In the case of any successful action to enforce any liability
8 under this section, the costs of the action together with reasonable
9 attorney's fees as determined by the court.
10 § 4. Section 380-v of the general business law, as relettered by chap-
11 ter 441 of the laws of 2014, is relettered section 380-w and a new
12 section 380-v is added to read as follows:
13 § 380-v. Use of consumer credit reports for employment decisions. (a)
14 No employer, employment agency, or licensing agency, or agent, represen-
15 tative or designee thereof, shall:
16 (1) use information in the consumer credit report of a job applicant
17 or employee in connection with or as a criterion for employment deci-
18 sions related to hiring, termination, promotion, demotion, discipline,
19 compensation, or the terms, conditions or privileges of employment;
20 (2) request the job applicant's or employee's consumer credit report
21 for such purpose; or
22 (3) refuse to hire a job applicant on the ground that he or she
23 refuses to give consent for the obtainment of his or her consumer credit
24 report.
25 (b) The provisions of subdivision (a) of this section shall not apply
26 if the employer is required by state or federal law to use a consumer
27 credit report for employment decisions.
28 (c) (1) Wherever there shall be a violation of this section, an appli-
29 cation may be made by the attorney general in the name of the people of
30 the state of New York to a court or justice having jurisdiction by a
31 special proceeding to issue an injunction, and upon notice to the
32 defendant of not less than five days, to enjoin or restrain the contin-
33 uance of such violation; and if it shall appear to the satisfaction of
34 the court or justice that the defendant has, in fact, violated this
35 section, an injunction may be issued by such court or justice, enjoining
36 and restraining any further violation, without requiring proof that any
37 person has, in fact, been injured or damaged thereby. In any such
38 proceeding, the court may make allowances to the attorney general as
39 provided in paragraph six of subdivision (a) of section eighty-three
40 hundred three of the civil practice law and rules, and direct restitu-
41 tion. Whenever the court shall determine that a violation of this
42 section has occurred, the court may impose a civil penalty of not more
43 than two thousand dollars for each violation. In connection with any
44 such proposed application, the attorney general is authorized to take
45 proof and make a determination of the relevant facts and to issue
46 subpoenas in accordance with the civil practice law and rules.
47 (2) Any person injured by a violation of this section may bring an
48 action in his or her own name to enjoin such unlawful act or practice,
49 an action to recover his or her actual damages or three thousand five
50 hundred dollars, whichever is greater, or both such actions. The court
51 may, in its discretion, increase the award of damages to an amount not
52 to exceed three times the actual damages up to ten thousand dollars, if
53 the court finds the defendant willfully or knowingly violated this arti-
54 cle. In the case of any successful action to enforce the foregoing
55 liability, the court may award the costs of the action together with
56 reasonable attorney's fees.
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1 (d) a consumer may file a complaint alleging a violation of the
2 provisions of this subdivision with the department of labor pursuant to
3 section two hundred nineteen-d of the labor law.
4 § 5. Section 380-i of the general business law is amended by adding a
5 new subdivision (d) to read as follows:
6 (d) In using a consumer credit report any employer, employment agency,
7 licensing agency, agent, representative or designee thereof, before
8 taking any adverse action based in whole or part on such report, shall
9 provide to the job applicant or employee:
10 (1) the name, address, and telephone number of the consumer reporting
11 agency providing the report;
12 (2) a description of the consumer's rights under section three hundred
13 eighty-b of this article; and
14 (3) a reasonable opportunity to respond to any information in the
15 report.
16 § 6. The labor law is amended by adding a new section 219-d to read as
17 follows:
18 § 219-d. Filing of complaint. Any job applicant or employee may file
19 with the commissioner a complaint regarding an alleged violation of
20 section three hundred eighty-v of the general business law for an inves-
21 tigation of such complaint and statement setting the appropriate remedy,
22 if any.
23 § 7. This act shall take effect on the one hundred twentieth day after
24 it shall have become a law.
