A.7056 (Dinowitz) / S.3868-B (Klein)

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This bill would prohibit employers from requesting a consumer credit report or using the results of a consumer credit report for employment decision purposes. The Business Council opposes enactment of this bill.

• Conducting consumer credit report checks on potential employees is one of several tools used by organizations in their employment screening process. There has been no evidence provided that would justify state government interference in the recruiting process used by private sector employers.
  
  
• It is common business practice for private sector employers to use information obtained and requested through the consumer credit reporting process but only for determining if a person is qualified for the job. The laws enforced by the federal EEOC prohibit an employer from using employment policies and practices that are not job-related and necessary to the operation of the business.
  
  
• Overall, the use of pre-employment consumer credit reporting checks is generally limited to those employers whose employees have a direct financial or money management component to their jobs. Prudent use of consumer credit report checks for employees in positions such as these is recognized as necessary by financial, governmental and outside auditors evaluating an organization's due diligence in protecting financial resources.
  
  
• As we work toward improvement of the state's economy and the business environment, the Legislature needs to send loud and clear positive messages to businesses in and out of the state. Enactment of this bill sends no such message. In fact, it sends the all too familiar message that the New York State Legislature stands ready to find new and different ways to interfere with business and worsen the business climate.

For these reasons, The Business Council opposes this legislation and respectfully urges that it not be enacted.