BILL NUMBER: S8227

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to prohibiting student loan
payment history checks in making employment decisions

 
PURPOSE:

Makes it an unlawful discriminatory practice for an employer to request
or to use the student loan payment credit history of an applicant for
employment in determining hiring decisions. This legislation makes an
exception for those cases in which the use of a student loan payment
credit history check is otherwise mandated by law.

 
SUMMARY OF SPECIFIC PROVISIONS:

Subdivision 1 of new section 219-b establishes that it shall be an
unlawful discriminatory practice for an employer to request or to use
for employment purposes information indicating the payment status of a
student loan of an applicant for employment or otherwise discriminate
              

against such an applicant with regard to hiring decisions.  Subdivision
2 of new section 219-b identifies exempts employers, or agents thereof,
who are required by state or federal law or regulation or by a self-re-
gulatory organization from coverage by this law.

 
JUSTIFICATION:

With student loan debt well in excess of $1.2 trillion nationwide and
climbing, according to the Consumer Financial Protection Board, the
burden posed by this burgeoning debt is making it increasingly difficult
for college graduates and attendees to meet their financial obligations
in a timely manner. The severity of the debt burden has had a growing
impact on college graduates with the Project on Student Debt reporting
that in 2013 nearly seven in ten college graduates of public and private
non-profit colleges had student loans of an average amount of $28,400 a
two percent increase from prior year levels.

With employers increasingly using credit histories in determining which
applicants to hire, as well the uncertain future of student loans and
the Department of Education, ten states and the City of Chicago have
already enacted laws that limit the use of credit checks by employers
making hiring decisions and the New York City Council is considering
broadly written legislation on this matter. (NY Times 1/16/15) With a
focused approach, this legislation recognizes the importance of ensuring
that college graduates and attendees who borrow money to invest in
improving their skill sets are not penalized in the job market due to
their inability to maintain timely payments on their outstanding student
loan debt.

 
PRIOR LEGISLATIVE HISTORY: New bill in the Senate

2024: A8997 referred to labor

2023: A788 referred to labor

2021/22: A5693 referred to labor

2019/20: A2149 referred to labor

2017/18: A2956 referred to labor

2015/16: A6405-A referred to labor

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately