As discussed in a prior blog entry
, the EEOC and Connecticut are reviewing the practice of using credit checks in connection with employment decisions.
The New Jersey Legislature also appears to have taken an interest in this issue. A bill was recently introduced in New Jersey that would place limitations on when employers may use credit checks. The bill would only allow employers to use credit checks in connection with applications for certain positions that involve financial management, access to financial information and/or the authority to use travel/expense accounts. If this bill is enacted, employers who violate the law may face fines of up to $5,000 for a first offense and up to $10,000 for subsequent offenses. This bill would also allow individuals who believe that their rights have been violated to sue for damages and attorneys’ fees.