Many employers would be barred from checking job-seeker's credit history due to a law enacted by the City Council in the recent past. Councilman Brad Lander (D-Brooklyn) has formulated the bill to make such an act illegal, discriminatory practice.
Laying of the groundwork for the bill
Pro-consumer advocates opined that employer credit checks hit people hard, especially borrowers who are behind on student loan payments, women and minorities. Project director at Staten Island Legal Service (a member of the NYC Coalition to Stop Credit Checks in Employment), . She further added that credit reports are notorious for being misleading, as they are often found to be wrought with multiple errors.
Instead of denying a job, bill supporters say that employees with bad credit require a job to repay their loans and in turn, improve their creditworthiness. Unfortunately, employers who run a check of their employees' credit scores further aggravate the misery these poor souls have to undergo, Ms Goldhill said. According to her, this keeps the cycle of poverty rolling. Supporting her sentiments is Councilwoman Debi Rose, a cosponsor of the bill, who said that credit checks prevent people from getting employed.
In a statement issued by Ms. Rose (D-North Shore) said, "It is time to remove artificial barriers that exclude countless numbers of New Yorkers from becoming gainfully employedÃ¢. To her, the and not close on their face.
What the bill stands for
From 2012 survey, it was found that almost 34 percent of all participating employers were reported to have conducted credit checks on selected job applicants. On the other hand, around 13 percent of the survey respondents said that they do check credits of all their prospective employees.
Interestingly, the like employers needing to check credit history before hiring, as necessitated either the state or the federal law.
and various other city workers who are already subjected to background checks by the Department of Investigation as well as financial disclosures under the Conflicts of Interest Board.
They are also permitted to check credit history of the applicants for jobs that calls for cyber security or fiduciary duties, in addition to those jobs where .
Reaction of the City Council
The law passed 47 to 3, with Councilman Steven Matteo (R-Mid-Island) among those against.
with a vote of 47 to 3, (R-Mid-Island) were amongst those who . As per his justifications, whether to run a check of a prospective employee's credit history or not during the hiring process should not be decided by the government, even though the motive of the bill is a bona-fide one.
However, Minority Leader Vincent Ignizio (R-South Shore) said that the law is Ã¢pro-workÃ¢ before voting in favor of the bill. To extend his support, Ignizio further added shared that lawmakers should encourage business entities to extend a helping hand to the employees who want to prove their skill set and that could have happened several years ago.
Ishanee Parikh, spokeswoman of de Blasio said that and that they pledge to continue the good work of helping more people to join the workforce in cooperation with the City Council.