Utah Senate Bill 70: Consumer Reporting Amendments Explained
Utah joined the list of states in 2025 that have enacted legislation regulating what information can be reported to organizations requesting...
With Verified Credentials' mobile-first candidate experience, you meet candidates where it's most convenient. Learn how easy we make it.
|
Now offering DOT services!Get your drivers on the road quickly and meet DOT regulations. |
Gain clarity about your compliance responsibilities with our new Adverse Action Guide! Use the interactive map to learn what regulations apply in your area.
Verified Credentials is a leading background screening company. Since 1984, we’ve helped validate and secure relationships through the use of our comprehensive screening solutions. We offer a wide variety of background checks, verifications, and innovative screening tools.
Our accreditation confirms that our policies, processes, and employee training meet rigorous industry compliance standards.
2 min read
Verified Credentials Jan 20, 2021 12:00:00 AM
Do your background reports contain credit information about your candidates? Some states, and cities, restrict the use of certain credit information for employment purposes.
In New York City, the hub for the financial industry, you may expect the same. If you’re near Wall Street, you might think that looking at job candidates’ financial history would be a no-brainer. In many cases, NYC prohibits the use of consumer credit history for employment purposes.
The Stop Credit Discrimination in Employment Act (SCDEA) is a part of the New York City Human Rights Law (NYCHRL). It places restrictions on the use of consumer credit history information.
In NYC, consumer credit history is “an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by:
City law generally makes it an unlawful discriminatory practice to request or use an applicant or employee’s consumer credit history for employment purposes. It is also illegal to discriminate against an applicant or employee regarding hiring, compensation, or the terms, conditions, or privileges of employment based on the applicant or employee’s consumer credit history.
There are limited exemptions to the SCDEA’s prohibition on the use of consumer credit history. Consumer credit history can be used for employment purposes if:
The NYC Commission on Human Rights (NYCCHR) is the city agency charged with enforcing the SCDEA. It issued legal guidance to assist employers with compliance.
According to the NYCCR, if an employer chooses to claim an exemption, it should:
Verified Credentials provides clients with a sample New York City Consumer Credit Report Disclosure. This can help you think about how to notify candidates if you decide to claim an exemption to the SCDEA and obtain a consumer credit history for employment purposes. Log into your Resource Library for the sample disclosure.
The NYCCHR states that it will impose civil penalties of up to $125,000 for SCDEA violations. However, SCDEA violations resulting from willful, wanton, or malicious conduct could be penalized by up to $250,000.
Talk with your legal counsel to determine if the SCDEA applies to you and how to stay in compliance with NYC law.
Utah joined the list of states in 2025 that have enacted legislation regulating what information can be reported to organizations requesting...
The phrase, “don’t mess with Texas,” has taken on a whole new meaning. If you were considering using AI for business in Texas, you might want to hold...
In 2024, we covered both Minnesota’s and Rhode Island’s Data Privacy Acts. While Rhode Island’s law will not go into effect until 2026, Minnesota’s...
A proposed class-action lawsuit filed against Whole Foods Market Group, Inc., Amazon.com, Inc., and Cornucopia Logistics, LLC (“Defendants”) is one...
Technology could help simplify the hiring process, including adopting new technologies to manage your candidate pool, run video interviews, and...
Some states and cities have introduced and passed bills to place restrictions on using credit checks for employment purposes. Generally, these laws...