New York Restricts Employers’ Use of Credit History in Employment Decisions

New York State Employers:

Beginning April 18, 2026, New York State will limit employers’ ability to use credit history in making employment decisions.

Amendments to New York State’s Fair Credit Reporting Act extend protections that are similar to those already in place under New York City’s Stop Credit Discrimination in Employment Act. Under the amendments, employers will be prohibited from using consumer credit history when making decisions about hiring, compensation, or other terms and conditions of employment.

The law includes limited exemptions, including when credit checks are required by law or the rules of self-regulatory organization, when a job involves access to trade secrets, or when an employee is authorized to enter into financial agreements of $10,000 or more on the employer’s behalf.