People looking for jobs in New Jersey have the protection of federal and state employment laws addressing issues like wages, overtime compensation, and workplaces that are free of discrimination and harassment. To protect job applicants’ privacy rights, New Jersey law limits how employers can conduct background checks on prospective hires, and on how they can use information obtained from an applicant’s credit or criminal history. The following is the conclusion of our two-part series about New Jersey laws that protect job applicants’ rights.
Use of Credit History in Hiring
At the federal level, the Fair Credit Reporting Act (FCRA) regulates consumer reporting agencies (CRAs), which are companies that compile information about consumers, and package that information in report form in exchange for a fee. The reports, known as consumer reports or credit reports, often include sensitive personal information that most people would rather remain private. The FCRA restricts the use of credit reports to a small number of situations, including employment.
New Jersey law largely mirrors the language of the FCRA. Under both laws, an employer needs a job applicant’s written consent in order to obtain a credit report. New Jersey goes a step further than the FCRA, however, by requiring employers to give job applicants a written disclosure stating that credit reports “commonly include information regarding the [applicant]’s character, general reputation, personal characteristics, and mode of living.” The employer must provide the applicant with a copy of the report upon request.