01-14-2026
Beginning on April 18, 2026, employers in New York state may no longer consider credit reporting of job applicants or employees to make employment decisions. Governor Kathy Hochul signed the law intended to reduce discrimination and prevent employers from relying on potentially inaccurate or irrelevant credit information.
Employers may not use information pertaining to “creditworthiness, credit standing, credit capacity, or credit history” as part of their decision-making processes. However, the law does allow some exceptions where employers may use credit information for the purpose of employment decisions, including the following:
- Jobs where an employer is required by law to use an individual’s consumer credit information for employment;
- Police officer positions or other jobs with law enforcement or investigative functions in a law enforcement agency;
- Jobs subject to a background investigation by a state agency. However, that agency may not use consumer credit history information for employment unless the position in question requires a high degree of public trust;
- Positions that require employees to be bonded under state or federal law;
- Jobs that require the employee to have security clearance under federal or state law;
- Employees with signatory authority over third-party funds or assets valued at ten thousand dollars or more, or involving fiduciary responsibility to the employer with authority to enter into financial agreements valued at least ten thousand dollars; and
- Workers allowed to modify digital security systems established to prevent the unauthorized use of the employer’s or client’s networks or databases.
While the new law applies to the entire state, New York City employers have been banned from using credit information in hiring decisions since 2015. California, Illinois, Maryland, Colorado, Connecticut, Hawaii, Vermont, Washington, and Oregon have similar laws in place.