Your credit history should not determine your ability to get hired, keep your job, or advance in your career. Yet, some employers improperly use credit reports to make employment decisions, unfairly penalizing workers for financial difficulties unrelated to their job performance. If your credit history has been used against you in hiring, promotions, or terminations, you may have legal options.
New York City has some of the strongest protections against credit history discrimination in the country. Most employers are prohibited from using credit checks when making employment decisions, with only a few exceptions. At Lipsky Lowe LLP, we help employees and job seekers fight against unlawful credit discrimination. If you believe an employer has violated your rights, contact us today to discuss your case.
What Is Credit History Discrimination?
Credit history discrimination occurs when an employer uses an individual’s credit report or financial history to make decisions about hiring, firing, promotions, or other job-related actions. This practice unfairly limits employment opportunities, particularly for individuals who have experienced financial hardship, medical debt, or identity theft.
Employers often justify credit checks by claiming they measure an applicant’s reliability or trustworthiness. However, credit history is not an accurate reflection of job performance. Many qualified candidates are denied jobs or promotions based on financial difficulties that have nothing to do with their ability to succeed in the workplace.
New York City law prohibits most private employers from using credit history as a factor in employment decisions. If you have been denied a job or opportunity because of your credit report, you may have a valid claim against your employer.
New York Laws Protecting Employees
New York City employees and job applicants have strong legal protections against credit history discrimination. Employers who violate these laws can face legal consequences, including fines and lawsuits from affected employees.
- New York City Human Rights Law (NYCHRL): Most private employers cannot request, use, or base employment decisions on credit history. This includes hiring, promotions, demotions, and terminations.
- Limited Exceptions: This prohibition may not apply to certain positions, such as law enforcement, financial industry jobs with fiduciary duties, and positions requiring security clearance.
- New York Labor Law Protections: Employers cannot discipline or terminate an employee solely based on credit history or financial status.
- Federal Fair Credit Reporting Act (FCRA): If an employer runs a credit check, they must obtain written permission and provide notice before taking adverse action based on the report.
If you believe your employer has improperly used your credit history in making an employment decision, trust Lipsky Lowe to assess your situation, explore your legal options, and protect your rights.
Signs of Credit History Discrimination
Many employees are unaware that their credit history was used against them in an employment decision. Here are some common signs that an employer may have engaged in credit history discrimination:
- You were asked about your credit report during an interview, even though your job does not require financial responsibilities.
- A job offer was revoked after a background check that included credit history.
- You were denied a promotion or pay raise, with credit history cited as a reason.
- Your employer retaliated against you after you questioned why your credit report was considered.
- You were not given proper notice before an employer used your credit report to make an adverse employment decision.
If you have experienced these situations, you may have a legal claim under New York law.
How Our Firm Can Help
Credit history discrimination can have a lasting impact on your career and financial security. If you were denied a job, promotion, or terminated because of your credit history, Lipsky Lowe is here to help.
Our firm represents employees and job applicants who are unfairly treated due to their credit history. We thoroughly assess your case, determine whether your employer violated city or state laws, and pursue legal action to recover damages. Depending on your situation, you may be entitled to lost wages, reinstatement, and other remedies.
We understand that financial challenges should not define your career opportunities. Our attorneys fight to ensure that employers comply with the law and stop using unfair hiring and employment practices. If you suspect credit discrimination has impacted your employment, we are ready to act on your behalf.
Take Action Against Credit History Discrimination
Employers cannot use your credit history to deny you a job, promotion, or fair treatment in the workplace. If your credit report was improperly used in an employment decision, turn to Lipsky Lowe. Contact us today to hold employers accountable and protect your future.