The New York City Commission on Human Rights has issued interpretive enforcement guidance for the Stop Credit Discrimination in Employment Act. The SCDEA amended the New York City Human Rights Law and made it an unlawful discriminatory practice for an employer to use or request an employee’s or applicant’s consumer credit history, except in certain enumerated circumstances. The guidance, which went into effect on September 3, 2015, provides important insight for employers on how the new law will be enforced. The Commission’s guidance clarifies that consumer credit history is “rarely” relevant to employment decisions and that consumer reports should not be requested for “most positions” in New York City. Employers in New York City should carefully evaluate, on a case-by-case basis, whether any exemptions to the SCDEA apply before requesting the credit history of applicants or employees.
Guidance Clarifies NYC Employers’ Obligations Under Credit Check Law
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