Bill Introduced to Prohibit Credit Checks as a Condition of Employment

On May 13, the Senate introduced a bill (S1922) that would prohibit an employer from requiring a credit check on a current or prospective employee as a condition of employment, unless the employer is required to do so by law, or reasonably believes that an employee has engaged in a specific activity that is financial in nature and constitutes a violation of law. The bill does not prevent an employer from a credit inquiry or employment action if credit history is a bona fide occupational requirement of a particular position or employment classification. Further, any current, prospective, or former employee aggrieved under the provisions of the bill may bring an action in a court of competent jurisdiction for appropriate injunctive relief and damages, including reasonable attorneys’ fees and court costs. In addition, the bill provides for the imposition of civil penalties collectible by the Commissioner of Labor and Workforce Development. Similar bills (S1791 and A2651) limiting an employer’s use of credit checks were introduced in March, and discussed in the April 2010 issue of the New Jersey eAuthority.