Bill Barring Potential Employee Credit Checks Reaches N.J. Assembly

New Jersey Assembly Chamber

Legislation A3238 that would bar New Jersey Employers from requiring credit checks before hiring someone in New Jersey may soon come before the full State Assembly.

 

The measure A3238 would bar credit checks unless the employer is legally required to do one or if it's needed due to the nature of the position being sought. A credit check may also be done if an employer reasonably believes a prospective employee has engaged in an improper activity that's financial in nature.

If the bill becomes law, violators could face $5,000 fines for an initial violation and $10,000 fines for subsequent violations.

The Assembly's labor committee approved the measure earlier this month, but a date for a full Assembly vote has not been scheduled. An identical bill S1922 has been introduced in the State Senate.

Bill Introduced to Prohibit Credit Checks As Condition Of Employment

Senate Bill 1922 would prohibit an employer from requiring a credit check from 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 specific activity that is financial in nature and constitutes a violation of law.

A similar Bill S-1791 has also been introduced

To view the full text of the Bill click on the Bill number you would like to view S-1922, S-1791,