Relates to the use of consumer credit history for certain purposes

• Democratic28

◆ The sponsor's argument

Why James Sanders Jr. says this is needed

This bill would prohibit an employer or potential employer from using a job applicant's or employee's consumer credit report in his or her deci- sion to hire, terminate, promote, demote, discipline, compensate, or in setting the terms, conditions, or privileges of employment. There is little to no evidence that shows a correlation between credit history and job performance. Nonetheless, in today's job market, the majority of large employers are now using credit checks as, part of their hiring process and in how they treat their existing employees. In addition to lacking any such meaningful correlation, the Federal Trade Commission has released a study indicating that as many as one in four consumers may have a "material error" in their credit reports. At a public hearing on the accuracy and use of consumer credit reports, both the credit reporting industry and numerous consumer advocates testified that millions of Americans have errors in their credit reports that put them in a lower credit risk tier, whether they are aware of any such errors or not. Many New Yorkers, through no fault of their own, have less than ideal credit histories that may stem from issues completely unrelated to their job performance or capabilities. These consumers are disadvantaged because employers are using credit reports to deter- mine if an applicant or employee is worthy of a job or a promotion. This bill would put an end to this practice.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.