New Jersey Senate Votes to Restrict Use of Credit Checks

Seven states have implemented laws limiting the use of credit checks: California, Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington. [Indiana] Nineteen other states and the District of Columbia are considering similar legislation. New Jersey may be the eighth state to prohibit the use of credit checks in the employment process. The New Jersey Senate passed a bill on May 31, 2012, that would prohibit employers from performing credit checks on job applicants and employees. There are limited exceptions to this prohibition for job positions that, by law, require credit checks, as well as jobs where a credit history is a bona fide occupational requirement, including those that oversee the company’s financial controls, have access to assets of the business or customers, or use expense accounts for travel or entertainment. Law enforcement and security positions are also exempt from the prohibition. The exceptions, however, are narrowly drawn and specifically exclude retail cashier positions even though employees in these positions deal with cash and credit transactions on a daily basis.

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