New York State Bans the Use of Credit Reports for Employment Purposes
Employers should be aware that effective April 18, 2026, New York’s Fair Credit Reporting Act will prohibit the use of credit reports for employment purposes with certain narrow exceptions.
On December 19, 2025, Governor Kathy Hochul signed Senate Bill 3072 (S3072) amending the State of New York Fair Credit Reporting Act that will make it an unlawful discriminatory practice for employers, or their agents, to request or use Consumer Credit History of an applicant, or an employee, for employment purposes unless it fits into one of the exceptions under the act including:
- As required by state or federal law or by a self-regulatory organization under the Securities Exchange Act;
- As required for Peace Officers, Police Officers, Law Enforcement or Investigative function in a law enforcement agency;
- As required by a state agency for positions with high degree of trust;
- Positions requiring bonding under federal or state law;
- Positions that by federal or state law require security clearance;
- Non-clerical positions with regular access to trade secrets (as defined in the act), intelligence information or national security information;
- Positions with signatory authority over third-party funds or assets of at least $10,000.00, or fiduciary authority to enter financial agreements of $10,000.00 or more on the employer’s behalf; or
- Positions with regular duties that allow the employee to modify digital security systems established to prevent the unauthorized use of the employer’s or client’s networks or databases.
What Should Employers Do?
Employers subject to the New York Fair Credit Reporting Act should review their background screening programs before April 18, 2026, to determine if they are processing credit reports for employment purposes. Employers should review the exceptions to the Consumer Credit History ban closely and talk with their Legal Counsel with any questions they may have.
More legislative information on S3072 is available here.
Information provided should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have.