On December 19, 2025, Governor Kathy Hochul signed into law Senate Bill 3072 (S3072) amending New York’s General Business Law to substantially restrict the use of an applicant’s/employee’s credit history in employment decisions. The new law, which takes effect on April 28, 2026, prohibits employers and/or their agents from requesting or using credit reports unless they fall within a handful of narrowly defined exceptions.

Quick Hits

• On December 19, 2025, Governor Hochul signed into law legislation amending New York’s General Business Law to restrict the use of an applicant’s/employee’s credit history in employment decisions, effective April 28, 2026.
• The new law prohibits employers from requesting or using credit reports for employees or job applicants unless they fall into specific exceptions, such as certain positions that will have regular access to trade secrets, and positions with fiduciary authority to enter financial agreements of at least $10,000 on behalf of the employer.
• Employers must ensure compliance by not inquiring into or using credit history information unless the position qualifies for an exception and should disclose the relevant exception to consumer reporting agencies.

The new law takes an expansive view of credit history and includes any information touching on an applicant’s/employee’s creditworthiness, credit standing, credit capacity, or payment history, regardless of whether it is obtained through a credit check or credit score. It also...

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