New York has now enacted a statewide ban that, with limited exceptions, prohibits employers from using consumer credit history in hiring and other employment decisions. Effective April 18, 2026, the law amends the state’s General Business Law to make it an unlawful discriminatory practice for most employers to request or rely on an applicant’s or employee’s credit information when making employment decisions.
What the Law Prohibits
The statute broadly defines “consumer credit history” to include an individual’s creditworthiness, credit standing, credit capacity, or payment history. It covers traditional consumer reports and credit scores, as well as information obtained directly from the individual, such as the number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limits, prior credit inquiries, bankruptcies, judgments, or liens.
With that definition in place, the law makes it unlawful for an employer, labor organization, employment agency, or their agents to request or use consumer credit history for employment purposes or to discriminate based on that history in hiring, compensation, or any term, condition, or privilege of employment. The restriction applies both at the application stage and for current employees. In practice, simply asking an applicant about prior bankruptcies or collections and using that information in a decision can trigger the law.
Limited Exceptions
The law includes narrow exceptions. Employers may use...
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