New York State: New Restrictions on Credit Reports for Employment

AB Website – Legislative Update

New York State S3072 – Credit Reports Generally Prohibited for Employment

The Basics

Location: New York State

Legislation: Bill S3072

Type: Credit Reports

Effective: 4/18/2026

Key Takeaway

·       It will be considered an unlawful discriminatory practice for an employer, or employment agency, to request or use an individual’s consumer credit history for hiring and employment decisions.

What are the provisions of this law?

Employers will be prohibited from requesting or using an applicant’s or employee’s consumer credit history for hiring and employment decisions. In addition to a credit report, the definition of “consumer credit history” includes an individual’s credit worthiness, credit standing, and credit capacity or payment history, as indicated by a consumer credit report, credit score, or information an employer obtains directly from the individual.

Are there any exceptions?

Exceptions to this law align closely with those in the New York City law, including but not limiting to: 

·       for which a state or federal law, or a self-regulatory organization, requires the employer (or its agent) to review credit history for employment purposes.

·       as a police officer, peace officer, or involves law enforcement or investigative duties within a law enforcement agency.

·       appointed by a state agency, requires a background investigation, and carries a high degree of public trust.

·       which require the employee to be bonded or have security clearance under state or federal law.

·       which are non-clerical and have regular access to trade secrets, intelligence information, or national security information.

·       with signatory authority over third party funds or assets valued at $10,000 or more or involve fiduciary responsibility with authority to enter into financial agreements valued at $10,000 or more on behalf of the employer.

·       with regular duties that allow employees to modify digital security systems established to prevent unauthorized access or use of the employer's or client's networks or databases.

Recommendations: We recommend employers consult with your legal counsel to determine whether your organization or specific positions qualify for these exceptions, and you may conduct credit checks. Additionally, review and discuss your organization’s policies and procedures with legal counsel to ensure ongoing compliance with evolving laws and regulations.

Please note: The information provided above is strictly for educational purposes.  It is not intended to be legal advice, either expressed or implied. Accurate Background recommends that you consult with your legal counsel regarding all employment regulations.