New York State Prohibits Employer Use of Credit Checks in Hiring Decisions, Affecting Statewide Employment Practices
Effective April 18, 2026, New York State has implemented a new law prohibiting employers from using consumer credit history in employment decisions. This law extends the restrictions previously applicable only in New York City under the Stop Credit Discrimination in Employment Act of 2015. The statewide law aligns New York with ten other states that have enacted similar measures. It prohibits employers, employment agencies, and labor organizations from requesting or using an applicant's or employee's credit history for hiring, compensation, promotion, or termination decisions. The definition of 'consumer credit history' is broad, encompassing formal credit reports, credit scores, and any financial information obtained from the individual. The law also applies to background screening companies, preventing them from furnishing credit history reports for employment purposes unless a statutory exemption applies. 
