A new act in New York City called the Stop Credit Discrimination in Employment Act will bring some significant change to the hiring practices of businesses with four or more employees once it goes live on February 2, 2020. As noted by the act itself, it will “make it unlawful discriminatory practice for an employer to use an individual’s consumer credit history in making employment decisions.” While this might not be much news for those who have impeccably clean credit histories, it can be a true life changing law to people who have struggled financially.
What is particularly promising as far as this new act is concerned is the fact that people who have fallen into credit problems end up swirling in a difficult fight for employment and income that becomes cyclically painful. Without a law such as this one, it can literally become impossible for someone to ever earn the money that he or she needs to pay off the debt accrued to raise a credit score.
This bold new Stop Credit Discrimination in Employment Act should be welcoming news for anyone on both sides of the political aisle; however, there has not been much reporting done on this news thus far.
It should also be noted, however, that there are a few exceptions that come with this new law. They are not deal breakers in any sense of the term, but if you hoping to possibly rely on this law to get a position in certain industries, you may be out of luck. These do make sense, though, as the exceptions could otherwise mean placing someone in a position where he or she may be tempted to make a quick buck and include things like jobs that require the employed to be bonded, earn a security clearance, have access to trade secrets, have access to intelligence information, positions that have signatory authority over assets of greater value than $10,000 or jobs that let the person change security codes for networks.
The only troubling issue that I see happening with these exceptions is that almost any business can claim they’re giving employees access to trade secrets, so that could be easily taken advantage of if an employer wants to be shady about the new act.
What are your thoughts on this new piece of legislation from New York City? For the most part, we’re fans of it and can’t wait to see it in action.