Looks Like Nyc Will Be Banning Credit Reports For Background Checks

NEW YORK - April 21, 2015 - PRLog -- On 04/16/2015, the city council voted to ban the use of credit reports for most employers during the pre-employment screening process. Mayor Bill DeBlasio is expected to sign the bill soon.

The way the bill is written, it does not only include a consumer’s credit history, but any information directly obtained from the applicant/employee regarding his or her bankruptcies, judgements, liens, credit accounts, late or missed payments, charge offs, collections, credit limits or prior inquiries.

Much like other states, certain exemptions to the law apply, such as:

·         Positions with

o   signatory authority over 3^rd party funds or assets valued at $10,000 or more

o   authority to enter into financial agreements valued at $10,000 or more on behalf of the employer

·         Positions with regular duties allowing an employee to modify digital security systems designed to prevent the unauthorized use of the employer’s or client’s networks or databases

·         Non-clerical positions with regular access to trade secrets or national security/intelligence information

·         Employers required to consider credit history for employment purposes under state or federal law or by a self-regulatory organization

·         Various public safety positions

·         Positions requiring bonding under federal, state or city law, and

·         Positions requiring security clearance under federal or any state law

New York City would join 10 other states (California, Maryland, Connecticut, Hawaii, Illinois, Washington, Oregon, Vermont, Colorado and Nevada) as well as two other cities, Chicago, IL and Madison, WI.

Employers Investigative Services urges their clients that do business in any of these areas, to take a second look at their background screening policies to ensure they are compliant. If there are any questions, employers are urged to call their legal counsel or Employers Investigative Services at 866-350-5638.

Employers Investigative Services is a nationwide pre-employment and drug screening firm that is focused on providing fast, accurate and affordable background checks for businesses and organizations of all sizes.