Starting on April 18, 2026, employers in New York State will no longer be allowed to use consumer credit history in most employment decisions. The law was signed by Governor Kathy Hochul in December 2025, and it amends the New York State Fair Credit Reporting Act.
The changes prohibit employers from requesting or using an applicant’s or employee’s consumer credit history in employment decisions such as hiring, compensation, promotions, or discipline. It also does not allow an employer to look at someone’s credit history or records of financial obligations. There are few exceptions under this new law including those who work in law enforcement, those who have a security clearance for their job, or an appointed position that requires a background check.
Previously, New York City was the only area in New York State where credit checks for employment decisions were banned when the City passed the Stop Credit Discrimination in Employment Act in September 2015. This new statewide law will help promote fair hiring practices and reduce barriers to employment that are tied to financial hardship. This will also help reduce potential discrimination when it comes to financial history and instead will shift the focus to skill-based or merit-based hiring.
“Employers should not underestimate the scope of this change,” said Amanda L. Smith, Partner at Tully Rinckey PLLC. “What was once a routine part of background checks is now largely off-limits, and missteps could carry legal...
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