New Jersey Senate Bill S1758

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Prohibits consumer reporting agencies from making reports containing adverse information related to employees affected by federal government shutdown.

Impact

The introduction of S1758 would have a significant impact on state laws related to consumer reporting and employment rights. This bill supplements the New Jersey Fair Credit Reporting Act, addressing a gap for employees who might otherwise be unfairly penalized due to circumstances beyond their control resulting from federal government funding lapses. By providing a mechanism for employees to contest adverse reports during shutdowns, the bill promotes job security and protects financial well-being, particularly during times of economic uncertainty.

Summary

Senate Bill S1758 aims to protect employees affected by federal government shutdowns from adverse information being reported to consumer reporting agencies. Specifically, it prohibits these agencies from including negative information about employees who notify them following a government shutdown that extends from the first day of the shutdown to 90 days post its conclusion. The bill acknowledges that affected employees can be federal employees or contractors whose pay has been suspended due to the shutdown. To use this provision, employees must notify both the consumer reporting agency and users of their reports, asserting their status and providing proof of employment.

Conclusion

Ultimately, S1758 seeks to address the intersection of consumer rights and employee protection amid federal policy decisions that directly affect livelihoods. It underscores ongoing discussions around worker rights and the financial implications of sudden job disruptions, highlighting the necessity for legislative measures that adapt to the changing economic landscape.

Contention

While supporters of S1758 argue it is a necessary measure to protect employees from undue financial harm during federal shutdowns, some may contend that such provisions could lead to challenges in the reporting practices of consumer reporting agencies. There may be concerns regarding the definitions of 'adverse information,' the time frames involved, and the burden placed on agencies to respond to disputes timely. Additionally, discussions may arise over the bill's retroactive application, which covers shutdowns starting from December 22, 2018, raising potential questions about how prior cases would be handled.