New York State Restricts Use of Credit Checks in Employment Decisions
Key Takeaways Beginning on April 18, New York employers are prohibited from using credit history information in employment decisions unless financial information is directly relevant to the role. Even indirect reliance on credit history may create risk. This applies to pre-employment screening and employment-related decisions during the course of employment. Failing to comply may lead to statutory penalties, administrative enforcement actions, and private litigation. Overview New York has amended the New York State Fair Credit Reporting Act to prohibit most employers from using credit history information in employment decisions. The amended law takes effect April 18, 2026, and applies broadly to hiring, compensation, promotion, and other terms and conditions of employment. This development expands existing restrictions and reflects a broader regulatory trend limiting the use of screening tools that are not closely tied to job performance . The amended law reflects increasing scrutiny o...