New York City Employers May Not Use Consumer Credit History In Making Employment decisions

January 29, 2016Charles Pascal Cohen

People seeking employment in New York City have one less hurdle to overcome. With the recent amendment to the New York City Human Rights Law, the Stop Credit Discrimination in Employment Act (“SCDEA” or the "Act"), the vast majority of employers (with 4 or more employees) will no longer be allowed to make hiring decisions based on job seekers' consumer credit history. The City recognizes that using "credit history when making employment decisions is a practice that has a disproportionately negative effect on unemployed people, low income communities, communities of color, women, domestic violence survivors, families with children, divorced individuals, and those with student loans and/or medical bills." Additionally, the City noted that "multiple studies have failed to demonstrate any correlation between individuals’ credit history and their job performance."