New York employers who rely on credit reports when making employment decisions must prepare for a significant change in the new year. On December 19, 2025, Governor Kathy Hochul signed S3072 into law (the "Law"). The Law aims to reduce discrimination and reliance on potentially inaccurate or irrelevant credit information by prohibiting the use of a job applicant's or employee's credit report when making employment decisions. It is set to take effect on April 18, 2026, although additional "technical revisions for clarity" are anticipated before enforcement begins.

While the Law makes most employers' requests for "creditworthiness, credit standing, credit capacity or credit history" off-limits, it provides specific exemptions for certain roles where access to credit information may be deemed necessary. These exceptions include:

1. any position with an employer that is required by law to use an individual's consumer credit history for employment purposes;
2. persons applying for positions as or employed as police officers, or in a position with a law enforcement or investigative function in a law enforcement agency;
3. persons in a position that is subject to background investigation by a state agency, provided, however, that the appointing agency may not use consumer credit history information for employment purposes unless the position is an appointed position with a high degree of public trust;
4. persons in a position in which an employee is required to be bonded under state or...

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