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The New York Fair Credit Reporting Act was recently amended to significantly limit how employers may use credit history. As of April 18, 2026, employers generally may not rely on an applicant’s or employee’s credit report when making hiring, promotion, compensation, discipline, or other employment decisions.
The law prohibits employers from using credit scores, credit reports, or other information related to credit accounts, bankruptcies, judgments, liens, or payment history. This new restriction goes beyond the limitations imposed by the federal Fair Credit Reporting Act, which regulates disclosure and consent but does not prohibit the use of credit information.
Limited Exceptions
The law allows employers to consider credit history only in narrow circumstances. These exceptions apply to roles where the law requires credit checks or where the job involves heightened trust or security responsibilities. Examples include certain law enforcement positions, jobs that require security clearance, roles involving access to significant third-party funds, and positions with regular responsibility for modifying digital security systems.
Employers should interpret these exceptions narrowly and rely on them only when a position clearly meets the statutory criteria.
Steps Employers Should Take Now
New York employers should begin preparing for compliance by reviewing hiring and background-screening practices and removing credit checks from most employment decisions. Employers should identify any roles that may qualify for an exception and document the basis for using credit information in those cases. Employers should also update policies, offer letters, and screening procedures and train human resources personnel and hiring managers on the new requirements.
Because the state law does not override local laws, employers must continue to comply with existing local restrictions, including New York City’s credit-check ban.
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