Legislation has been proposed by the New Jersey Senate Labor committee regarding the use of credit reports by employers when hiring, and the bill has already received much attention across the state.
State Senator Sandra Cunningham stated the proposal was made because the Labor committee believes no person should be turned down for employment due to blemishes on their credit report, according to Newsworks.org.
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“You’re saying that because a person has lost their home, because a person has not been able to pay their credit card debt, they cannot be treated with respect and dignity and giving an opportunity for honest employment,” said Cunningham.
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Despite the committee’s reasoning for the bill, it has already been met with criticism from some groups, including the Commerce & Industry Association of New Jersey and New Jersey Chamber of Commerce, both of which stated companies have every right to use credit ratings in their determinations for hiring.
“This current legislation as it stands will in our belief add to the cost of doing business in our state by imposing new mandates, restrictions, and regulations on the employer community,” said the chamber’s vice president, Mike Egenton. “This legislation also has the potential of a new round of costly lawsuits towards our employers.”
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Stefanie Riehl, who works with the New Jersey Business and Industry Association, told WGBO News that the Federal Equal Employment Opportunity Commission is looking into the potential complications the legislation could cause for businesses with out-of-state operations.
She indicated to the news source there may be some uncertainty on the part of companies statewide that are unsure of how the bill would affect their operations.
Currently, seven states—California, Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington—have implemented some form of regulation concerning the use of credit reports when making hires.
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