Credit Discrimination: NYC’s Credit Law

Credit Discriminiation

Credit discrimination is illegal in New York City. The NYC Commission on Human Rights passed a new law that forbids most companies from checking or using credit history for employment decisions. The following is an overview of the Credit Check Law:

Who Does the Law Apply to?

It is illegal to use credit discrimination in most companies.

The Credit Check Law covers employers with 4 or more employees. It also covers individual owners. Additionally, the 4 employees can work in different locations. That means some employees can work outside of NYC.

The Law covers full-time and part-time employees. This includes interns, undocumented workers and domestic workers. It also includes independent contractors and probationary employees.

What Positions Still Face Credit Discrimination?

It is still legal for employers to ask about credit history for certain positions. They are also allowed to run a credit check and use credit history in an employment decision. The following are some positions that have credit checks:

  • – police officer
  • – peace officer
  • – finance executive
  • – computer security executive
  • – executives with control over trade secrets


Prohibited Actions

Employers cannot run a credit check on most employees. Furthermore, they cannot hire another company to check on employees. It is also illegal for employers to ask employees to sign a document so they can check credit. Finally, employers cannot use consumer reporting companies to review an employee’s credit history.

A company cannot ask an employee about their credit standing. This includes:

  • – credit card debt
  • – student loans
  • – late payments
  • – judgements

This Law pertains to workers or people looking for a job.

An employer cannot fire an employee because of credit.  Credit should not prevent an employee from being hired or promoted neither. Finally, this Law does not prevent companies from looking into an applicant’s background. Companies are still allowed to research candidates online (LinkedIn, Google, etc) and ask for resumes or references.