Prohibits employers from obtaining, requiring, or discriminating on the basis of credit reports.
Impact
By restricting the use of credit reports, S368 seeks to foster a more equitable hiring process, enhancing employment opportunities for those who may be unfairly judged based on poor credit history or previous financial struggles. The bill outlines exceptions for certain positions that inherently require financial responsibility, such as managerial roles or law enforcement jobs, thereby balancing employer needs with employee protections. This change could lead to a shift in how employers evaluate candidates, potentially broadening the pool of eligible applicants for various positions.
Summary
Senate Bill S368 prohibits employers in New Jersey from requiring or discriminating on the basis of credit reports for current or prospective employees. The legislation presents a significant shift in employment practices by limiting the reasons an employer can use credit history in their hiring decisions. Specifically, credit checks can only be mandated if legally required or if an employer has reasonable suspicion that a prospective employee has engaged in a financial misconduct. This bill aims to protect job applicants and employees from discrimination linked to their credit history, which can disproportionately affect individuals from lower-income backgrounds who may struggle with financial issues.
Contention
The bill has sparked discussions among stakeholders including employers and employee rights advocates. Supporters argue that reliance on credit history for employment decisions can lead to a cycle of poverty as individuals with poor credit scores may struggle to secure jobs, thus impeding their ability to improve their financial situation. Critics from some business sectors raise concerns about the potential for increased risks in hiring employees who might be financially irresponsible. Thus, the private sector's response to this legislation will be crucial in determining its effectiveness and impact on employment practices in the state.
Prohibiting an employer from relying on information about a prospective employee's compensation when making employment decisions or inquiring about a prospective employee's compensation and from restricting an employee's right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)
Prohibiting an employer from relying on information about a prospective employee's compensation when making employment decisions or inquiring about a prospective employee's compensation and from restricting an employee's right to disclose compensation information, allowing actions in circuit court, and providing a penalty. (FE)
Civil rights: general discrimination; sexual orientation and gender identity or expression; remove as categories protected under the Elliott-Larsen civil rights act. Amends title & secs. 102, 103, 202, 203, 204, 205, 206, 207, 209, 302, 302a, 402, 502, 504, 505 & 506 of 1976 PA 453 (MCL 37.2102 et seq.).