A proposed ban on employers checking the credit records of current or prospective employees met broad resistance from a range of employer groups today.
The Senate Labor Committee advanced a bill, S-455, that would bar the practice, with exemptions if credit history is required as a qualification for a job, such as a financial management position.
Stefanie Riehl, an assistant vice president with the New Jersey Business & Industry Association, said the Legislature should wait until the federal Equal Employment Opportunity Commission issues a decision regarding credit checks, which it has been reviewing since 2010.
“It could be difficult to understand how to fully comply with the law” for multistate employers if New Jersey adopted stricter requirements than the federal government, Riehl said.
Riehl also said many employees now cover duties as needed that may not be reflected in their job descriptions, including financial responsibilities.
“This limited exemption may not reflect current workplace dynamics,” she said.
Michael DeLoreto, government affairs director of the New Jersey Food Council, said clerks handle customer loyalty card applications, and the exemption was unclear whether it would cover these positions, since it covers positions that involve access to customers’ financial information.
Employers see the measure as an infringement on their right to use all available information to select the best applicants, said Diane Walsh, government affairs vice president of the Commerce & Industry Association of New Jersey.
“If this legislation passes, it would have a chilling effect on the business climate, which we are all wanting to improve, so that companies locate and grow here and more jobs are created,” she said.
Sen. Dawn Marie Addiego (R-Medford) voted to release the bill, saying that affluent residents in her district are facing negative credit scores for the first time in their lives due to the economy.
“I’m very concerned that people aren’t going to be able to get a job because of the economy,” Addiego said, adding that she hopes a compromise can be reached.
Sen. Sandra B. Cunningham (D-Jersey City) asked business owners to “look at it like it really is: Everyone does not want to walk around with bad credit. … No one should be denied a job because their credit is not what it should be.”
MBI-GluckShaw lobbyist Lisa Ginther submitted proposed amendments to the bill on behalf of the Consumer Data Industry Association. If adopted, these changes would clarify that the use of credit history isn’t limited to financial managerial positions, and would cover others who have access to corporate credit or debit cards, as well as limiting the penalty for violations to $1,000 instead of the up to $5,000 in the bill.
