The year 2011 marked new challenges for employers across the country concerning hiring decisions based on a job applicant’s unemployment status, bankruptcy status, credit history or criminal background. In this regard, New Jersey was a visible trendsetter. Most notably: (1) the New Jersey state legislature was the first in the country to prohibit an employer from advertising jobs as only open to currently employed applicants, and (2) the Third Circuit Court of Appeals became the first federal appellate court in the nation to hold that the Bankruptcy Code permits an employer to consider an applicant’s bankruptcy status in its hiring determinations.
Legislative and judicial attention to the hiring process is unlikely to subside in the near future. Accordingly, New Jersey employers should carefully consider how they draft their application forms, structure their interviews and perform their due diligence during the hiring process.
Unemployment Discrimination
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