December 28, 2013

New Jersey Assembly Advances "Ban the Box" Legislation

On December 16, 2013 the New Jersey Assembly Labor Committee advanced the Opportunity to Compete Act.  This new bill seeks to prohibit New Jersey employers from inquiring about an applicant’s criminal history or conducting a criminal background check before the employer extends a conditional offer of employment.

The bill, if passed, would add New Jersey to a growing list of states and municipalities that already have “ban the box” laws.  However, New Jersey’s proposed bill is far stricter than the most in that it (1) requires employers to obtain the applicant’s written consent for a background check; (2) limits what types of offenses an employer may consider in making hiring decisions; and (3) requires employers to provide the applicant with an official Criminal Record Reconsideration Form if the employer rescinds a conditional offer.

Notably, the law only applies to employers with 15 or more employees.  While the law restricts the employer in many ways, it is not limitless and does not provide the employee with a private right of action.  Rather, the law is enforced by the New Jersey Division of Civil Rights.  For noncompliance, an employer is subject to penalties ranging from $500 to $7,500 per violation.