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Highlights
Impacted employers:New York employers, labor organizations, employment agencies (or their agents)
Effective date:April 18, 2026
Summary:New York will restrict the use of credit history in certain employment decisions.
Next steps:Review hiring policies and procedures and train supervisors on the changes under the law.
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The details
New York has enacted legislation (Senate Bill 3072), which restricts the use of credit history in employment decisions. Senate Bill 3072 is effective April 18, 2026.
Under the law, consumer credit history is defined as an individual's credit worthiness, standing, capacity or payment history that stems from a consumer credit report, their credit score, or information an employer obtains directly from the individual regarding details about credit accounts, including:
- The individual's number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limits, prior credit report inquiries
- Bankruptcies, judgments, or liens
Note: A consumer credit report includes information by a consumer reporting agency that relates to a consumer's creditworthiness, credit standing, credit capacity or credit history.
Prohibited Actions
Under the law, covered employers:
- Are prohibited from requesting or using an applicant's consumer credit history for employment purposes
- Cannot discriminate against an applicant or employee in hiring, compensation, or the terms, conditions or privileges of employment based on their consumer credit history
Note: Employers may request or receive consumer credit history information under a lawful subpoena, court order or law enforcement investigation.
Exceptions
The law does not apply to:
- An employer, or agent required by state or federal law (or by a self-regulatory organization) that uses consumer credit history for employment purposes
- Individuals applying for positions as or employed as peace officers
- Police officers or those in law enforcement
- Individuals in a position that:
See the text of the law for further details.
Additionally, the law:
- Retains the obligations of individuals required by state or local law relating to disclosures by public employees of conflicts of interest; and
- States that a local law, ordinance or regulation is not inconsistent with Senate Bill 3072 if the protection provides an employee or job applicant greater protection than Senate Bill 3072.
Next steps
Review hiring policies and procedures and train supervisors on the changes under the law.