NJ Law To Limit Credit Checks In Employment Screening

Some NJ Legislators consider the request of a credit check in the screening process discriminatory. A new proposed law (A704) is now in the NJ Assembly.

Arizona (I-Newswire) May 27, 2014 - Some NJ Legislators consider the request of a credit check in the screening process discriminatory. A new proposed law (A704) is now in the NJ Assembly.

The law would allow for credit checking for a position where sensitive financial information is available to the employee or for occupations requiring a credit check such as law enforcement. The bill should not limit your internal security, but you might be liable for the use of credit checks, even a FICO score, for many of your positions if you don't keep in touch with the proposed law.

For example, the new law would cover employees that don't handle financial records such as customer service or sales clerks. Credit card swiping does not count as access to financial information. Billing, purchasing and collection, as you might expect, are allowed to check credit.

Usually, when similar laws are proposed in one state, they are quickly adopted by other states as well. Even if you are not in New Jersey, this could very likely become a rule you need to recognize. You can follow the proposed law by clicking on the link below.


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May 27, 2014

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