Tag Archives: credit reports in hiring decisions

If Pending New York State Law Restricting Use of Credit Reports is Enacted, Will Financial Institutions Be Exempt?

By:  John F. Fullerton III

As a direct result of the financial crisis, an increasing number of states have enacted or are considering statutes that prohibit or restrict employers from obtaining and using credit reports for making hiring and other employment decisions.  Seven states have now passed such legislation – California, Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington.  Similar legislation is pending in many other states – including New Jersey and New York – and bills have been introduced at the federal level as well.  In most states that have passed such legislation, there is some form of exemption specifically applicable to various types of financial institutions.  For example,

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