This bill would prohibit employers from requesting a credit history or using the results of a credit history for employment decision purposes. The Business Council opposes enactment of this bill.
- Conducting credit history checks on potential employees is one of several tools used by organizations in their employment screening process. There has not been any evidence provided that would justify state government interference in the recruiting process used by private sector employers.
- It is common business practice for private sector employers to use information obtained and requested through the pre-employment process but only for determining if a person is qualified for the job. The laws enforced by the federal EEOC prohibit an employer from using employment policies and practices that are not job-related and necessary to the operation of the business.
- Overall, the use of pre-employment credit history checks is generally limited to those employers whose employees have a direct financial or money management component to their jobs. Prudent use of credit history checks for employees in positions such as these is recognized as necessary by financial, governmental and outside auditors evaluating an organization’s due diligence in protecting financial resources.
- As we work toward improvement of the state’s economy and the creation of jobs lost in the last several years, the Legislature needs to send loud and clear positive messages to businesses in and out of the state. Enactment of this bill sends no such message. In fact, it sends the all too familiar message that the New York State Legislature stands ready to find new and different ways to interfere with business and worsen the business climate.
For these reasons, The Business Council opposes this legislation and respectfully urges that this bill not be enacted.