NYC bars the use of credit checks in hiring

[n2doc]

Source: CBS News

New York City lawmakers are barring most employers from checking a job candidate's credit record.

The city council passed a bill on Thursday that makes it illegal to request or use a job applicant's credit history in making a hiring decision.

"All New Yorkers deserve the chance to compete for a job based on their skills and qualifications, not three digits on a financial report," said Council Speaker Melissa Mark-Viverito in a statement after the measure was approved by a margin of 47-3. "Just because you've struggled with medical bills or student loans does not make you any less hard working, qualified, or trustworthy than anyone else."

City council member Brad Lander, who sponsored the legislation, said in a press conference that credit checks for employment "unfairly lock" New Yorkers out of jobs.

Read more: http://www.cbsnews.com/news/us-city-bars-the-use-of-credit-checks-in-hiring/

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[yeoman6987]

1. I am glad this passed

I don't think credit score should be used in anything at all except requesting loans. The use of credit scores for renting is the most ridiculous of all. If a person has a score that doesn't allow for a mortgage and then the don't have one enough to rent, what do they do? Crazy!

[sunnystarr]

3. ^^^^^^^

[HockeyMom]

4. We did a background/credit check on a potential renter

Found out that he was wanted by the police for armed robbery. Duh? NO. Could he pay the rent? I am sure he could, from stolen money.

Background checks for criminal records are very, very useful. They are done all the time on people for jobs working with the most vulnerable members of society (children, disabled, elderly). A credit check? Why???????

[Xithras]

7. As a former landlord, I have to disagree with that.

Generally speaking, I didn't really care what the applicants actual score was. I was looking for current collections activity or multiple unpaid delinquencies. If the person is ALREADY being pursued by other people over unpaid bills, the LAST thing I wanted to do was become another unpaid creditor on their list. I had mortgages to pay on those properties.

If someone came in with a 450 credit score but didn't show any current delinquencies, I generally didn't have a problem renting to them if their employment and references checked out. If they only showed one, I usually asked them about it to get clarification, and if it was something like an overdue unpaid large medical bill or an overdue student loan payment, I'd overlook it. But if they had multiple delinquencies with credit card companies, banks, or other discretionary lines of credit (indicating income or money management issues), the applicant would typically be denied. While every landlord and property management agency is different, this is how the majority of rental applications are reviewed, in my experience.

[Spitfire of ATJ]

13. In OC Cal they have a separate agency that only tracks renter info for landlords....

Things like evictions for non-payment and leaving the place a mess.

[Helen Borg]

15. As a landlord you want to be paid from them.

So, I can see the relevance of the credit score there. As an employer, I don't. I'm not lending money to the person, and the person will not owe money to me in the future. I just need this person's skills.

[Igel]

17. But if you find that the guy that's going to be handling a lot of cash

has a horrible credit score and is being hounded by creditors for a large sum of cash or close to eviction, then you might think twice. Under pressure and then under temptation? Not a good mix, even if the guy's usually honest.

If I were going to hire him for a non-cash-handling job but one that would require a few months' training, I may also think twice. People in that much financial distress are more likely to move or be forced to move--and then you're back to hiring somebody, having to train that person from scratch, and the inefficiencies and loss of income from those inefficiencies last a coule mor months.

[jtuck004]

2. Good work y'all! n/t

[onehandle]

5. That's going to really piss off the financial industry.

A clear credit record and high score is usually required as an absolute to qualification.

Good. Fuck them.

[niyad]

6. yeah, because the high scores of the vultures of wall street keeps them so honest and ethical,

right??

[Ruby the Liberal]

19. Think bank tellers not investment bankers.

If someone is in arrears and/or collections, handling cash may be too tempting and lead to theft. Thats why banks run credit checks on all employees, but especially those handling large amounts of cash.

Bank teller's pay is comparable to retail, without the large sums of cash.

[d_legendary1]

8. They should do this nation wide

This kind of practice harms qualified people who are down on bad times. I had good credit before I lost my job thank to the War Shrub (worked in the flooring industry until easy credit destroyed our customers).

[meow2u3]

9. K & R for fairness

[shenmue]

10. Makes sense

[Spitfire of ATJ]

11. So much for this attempt to keep the classes separate.....

Too many employers act like they OWN you just because you work for them.

Some things should remain PRIVATE from these tin gods.

[Runningdawg]

12. It's about time!

I have never used credit, so I have no credit. No credit is worse than bad credit. I own (free and clear) 3 vehicles and 2 homes, yet a local supermarket turned me down for a part-time, holiday temp position as a night stocker because I had no credit rating. I had to know why so I went to their HR office. I was told "the only people with NO credit whatsoever are poor people who steal, we don't want them working for us." I produced my last 2 months of register receipts from their store totaling nearly 1200$, tendered in CASH and told them they could kiss my ass AND business goodbye.

[Helen Borg]

14. Well done. About time!

What does the credit score (a BS score to begin with) have to do with being able to work? It's not like you are asking for a loan... It should be the case everywhere.

[Zorra]

16. Credit checks when hiring unfairly discriminates against people who never use credit.

Someone with a stellar employment record, who is totally capable, responsible, and conscientious, who has never used credit, could be refused employment on the basis that they have a low credit score.

Using credit checks to discriminate against job applicants should be made illegal nationwide.

[smirkymonkey]

18. +1000