Effective today (September 3, 2015), the Stop Credit Discrimination in Employment Act (SCDEA) amends the NYC Human Rights Law (Title 8 of the NYC Administrative Code) to prohibit discrimination based on credit history.
A New “Unlawful Discriminatory Practice”
Specifically, the SCDEA adds a new section, § 8-107(24), to the NYCHRL. That section provides:
(a) Except as provided in this subdivision, it shall be an unlawful discriminatory practice for an employer, labor organization, employment agency, or agent thereof to request or to use for employment purposes the consumer credit history of an applicant for employment or employee, or otherwise discriminate against an applicant or employee with regard to hiring, compensation, or the terms, conditions or privileges of employment based on the consumer credit history of the applicant or employee. (Emphasis added.)
“Consumer Credit History”
SCDEA defines “consumer credit history” as
an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by: (a) a consumer credit report; (b) credit score; or (c) information an employer obtains directly from the individual regarding (1) details about credit accounts, including the individual’s number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limit, prior credit report inquiries, or (2) bankruptcies, judgments or liens. A consumer credit report shall include any written or other communication of any information by a consumer reporting agency that bears on a consumer’s creditworthiness, credit standing, credit capacity or credit history. (NYCHRL § 8-102(29).)
Exceptions Etc.
The new law provides various exceptions. The above prohibition does not apply to an employer “that is required by state or federal law or regulations or by a self-regulatory organization … to use an individual’s consumer credit history for employment purposes” or to “persons applying for positions as or employed” as, for example, “police officers or peace officers … or in a position with a law enforcement or investigative function at the department of investigation.” NYCHRL § 8-107(24)(b)(1), (2).
In addition, it does not “preclude an employer from requesting or receiving consumer credit history information pursuant to a lawful subpoena, court order or law enforcement investigation.”