New York State Bans Use Of Credit Reports In Most Employment Decisions

New York State has enacted a new law that will generally ban employers from requesting or using credit reports and other consumer credit history in most employment decisions starting April 18, 2026.​

What the new law does

• The law (Senate Bill S3072) amends New York’s Fair Credit Reporting Act to make it an unlawful discriminatory practice to request or use an applicant’s or employee’s “consumer credit history” for employment purposes.​

• “Consumer credit history” includes credit reports, credit scores, and other information about accounts, debts, bankruptcies, judgments, or liens.​

• The ban covers hiring, firing, promotions, compensation, and other terms and conditions of employment for applicants and current employees.​

Effective date and scope

• Governor Kathy Hochul signed S3072 on December 19, 2025, and it takes effect on April 18, 2026.​

• The law applies statewide to employers, staffing agencies, labor organizations, and their agents, bringing New York State protections in line with (and extending beyond) New York City’s existing credit-check restrictions.​

Key exceptions

Employers may still obtain or use credit history for certain narrowly defined roles, including:​

• Positions where state or federal law, regulation, or a self-regulatory organization (such as in securities) requires use of credit history for employment purposes.​

• Police officers, peace officers, or positions with law enforcement or investigative functions in law enforcement agencies.​

• Certain appointed positions subject to state-agency background investigations that involve a high degree of public trust.​

• Jobs requiring bonding under state or federal law, positions needing a security clearance, or roles with significant financial authority or access to sensitive systems (for example, authority to bind contracts or control funds of at least 10,000 dollars, or ability to modify critical digital security systems).​

Enforcement and oversight

• Violations are treated as unlawful discriminatory practices under New York law, exposing employers to potential administrative and civil claims.​

• The New York State Division of Human Rights is directed to collect data on how employers use the exemptions and to report back to the legislature within two years of the law’s effective date.​

Practical implications for employers and workers

• Employers will need to remove routine credit checks from hiring and promotion processes, except where an exemption clearly applies, and revise policies, forms, and vendor instructions accordingly.​

• Applicants and employees will generally no longer face adverse employment decisions based on credit problems unrelated to the essential requirements of exempt positions, similar to protections long in place for jobs within New York City.​