Credit Checks on the Chopping Block: NYC Restricts Credit Inquiries During Hiring

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Following a vote by the New York City Council on April 16 and a May 6 hearing held by Mayor Bill de Blasio, the Mayor yesterday signed a local law that limits the ability of employers in New York City to request credit-related information from current and potential employees. Among other things, New York City employers will no longer be able to perform credit checks as part of their employee screening process for most positions.

The law, “Prohibiting discrimination based on consumer history,” was passed as an amendment to the New York City Human Rights Law (“NYCHRL”) by a vote of 47-3. While private New York City employers may still collect creditrelated information for certain employees and in certain circumstances (including when required by law), the collection and use of this information will be greatly restricted when the law goes into effect on September 3, 2015.

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