Fair Hiring in Banking: The FDIC’s Final Rule to Revise FDIC Regulations
On July 30, 2024, the Federal Deposit Insurance Corporation (FDIC) approved the Final Rule to Revise FDIC Regulations Concerning Section 19 of the...
With Verified Credentials' mobile-first candidate experience, you meet candidates where it's most convenient. Learn how easy we make it.
Ongoing monitoring of driving records can help employers avoid risk and improve driver safety. Learn about the benefits of adding Verified Credentials' newest solution to your screening strategy.
Learn the latest trends in employment background checks. This report uses real-life usage data to uncover how employers are screening across industries.
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.
On July 30, 2024, the Federal Deposit Insurance Corporation (FDIC) approved the Final Rule to Revise FDIC Regulations Concerning Section 19 of the...
The Consumer Financial Protection Bureau (CFPB) issued a recent policy statement advising employers to comply with the Fair Credit Reporting Act...
Illinois Governor J.B. Pritzker signed House Bill 3773 into law on August 9, 2024, expanding the state’s regulations on the use of artificial...
Last month we discussed New York City’s Fair Chance Act (FCA). It places restrictions on how NYC employers can use certain criminal history...
Keeping track of the laws impacting the hiring process can be a challenge for any employer. In addition to federal regulations, like the Fair Credit...
Some states and cities have introduced and passed bills to place restrictions on using credit checks for employment purposes. Generally, these laws...