§ 2-05 Prohibitions on Discrimination Based on Credit by Employers, Labor Organizations, Employment Agencies, and Agencies Authorized To Issue Licenses, Registrations, or Permits.
RCNY § 2-05
(a)Per Se Violations. The following are per se violations of §§ 8-107(9)(d) and 8-107(24) of the Administrative Code (regardless of whether any adverse employment or licensing action is taken against an individual applicant, licensee, or permittee), except where an exemption applies pursuant to subdivision (c) of this section: (1) Requesting consumer credit history from an applicant, licensee, or permittee.
(2)Requesting consumer credit history regarding applicants, licensees, or permittees from a consumer reporting agency.
(3)Using consumer credit history for employment, licensing, or permitting purposes.
(4)Requesting or requiring applicants for employment, licenses, or permits to consent to the disclosure of their consumer credit history to the employer.
(b)Presumptive Violations. It shall be a rebuttable presumption that posting or circulating any solicitation indicating that the employer, labor organization, employment agency, or licensing agency will use consumer credit history for employment, licensing, or permitting purposes constitutes a violation of §§ 8-107(9)(d) and 8-107(24) of the Administrative Code of the City of New York, except where an exemption applies pursuant to subdivision (c) of this section.
(c)Exemptions Under the Stop Credit Discrimination in Employment Act.
(1)Employers may require or use for employment purposes an applicant's or employee's consumer credit history when required to do so for specific positions or titles under state or Federal law or regulations, or rules or regulations promulgated by self-regulatory organizations as defined in Section 3(a)(26) of the Securities Exchange Act of 1934. This exemption includes positions in which applicants or employees are not required to be registered with a self-regulatory organization but where the applicant or employee nevertheless either chooses to become registered while in the position or elects to maintain their prior registration.
(ii)Positions with a law enforcement or investigative function at the Department of Investigation.
(iii)Positions subject to background investigation by the Department of Investigation, provided however that the appointing agency may not use consumer credit history obtained by the Department of Investigation for employment purposes unless the position is an appointed position and a high degree of public trust, as defined in 47 RCNY § 2-01, has been reposed in the position.
(iv)Positions requiring bonding under City, State, or Federal law or regulation. An exemption will not apply where bonding is simply permitted, but not required, by City, State, or Federal law or regulation. Only positions where bonding is required by law are exempt.
(v)Positions requiring security clearance under Federal or State law. This exemption is applicable only when such security clearance is legally required for the person to fulfill the duties of the position in question.
(vi)Non-Clerical positions having regular access to trade secrets, intelligence information, or national security information as defined in 47 RCNY § 2-01.
(vii)Positions in which the individual regularly has: (A) signatory authority over third-party funds or third-party assets that are valued at $10,000 or more; or (B) fiduciary responsibility to an employer who has granted the employee signatory authority to enter into financial agreements valued at $10,000 or more on behalf of the employer. Signatory authority shall mean final authority, not subject to approval, delegated by an employer or third party to commit the employer or third party to a binding agreement. This exemption does not apply to positions for which the $10,000 threshold can be met only by aggregating the value for multiple assets or agreements over which the position holds signatory authority or fiduciary responsibility.
(viii)Positions with regular duties that allow the employee to modify digital security systems established to prevent the unauthorized use of the employer's or client's networks. For purposes of this provision, a digital security system refers to an organization's security program that is designed to ensure information, assets, and technologies are not accessible by unauthorized parties outside of the employer or its clients.
(i)All exemptions to the prohibitions on credit discrimination must be construed narrowly.
(d)Early Resolution for Commission-Initiated Complaints Regarding Certain Per Se Violations.
(5)Early Resolution Penalties.
(6)Admission of Liability in an Early Resolution Case. An admission of liability must be returned to the Commission in the manner prescribed in the Early Resolution Notice. Once the admission is received, the Law Enforcement Bureau will promptly forward it to the Chair. The signature of the Chair with the notation "SO ORDERED" constitutes the final order of the Commission. A copy of such order will be served upon the respondent.
(7)Contesting Liability and Filing an Answer in an Early Resolution Case. Notwithstanding any provision of 47 RCNY § 1-61 or 47 RCNY § 1-62, if a respondent elects to deny liability and contest the allegations in the complaint, the respondent shall file an answer and, upon receipt of the answer, the Law Enforcement Bureau will refer the case to the Office of Administrative Trials and Hearings for a hearing pursuant to 47 RCNY § 1-71. The hearing will be conducted in accordance with Subchapter C of 48 RCNY Chapter 2.
(8)Failure to Respond in an Early Resolution Case.
(9)Relief From Default in an Early Resolution Case. At any time prior to the issuance of a decision and order, the respondent may move for relief from default. (Added City Record 11/24/2017, eff. 12/24/2017)
