New York has enacted S03072, amending the New York Fair Credit Reporting Act to limit the use of consumer credit history in employment-related decisions. The law will become effective on April 18, 2026, and applies to hiring and other personnel practices. This amendment aligns with existing local regulations and similar measures adopted in other states.
The statute prohibits employers, labor organizations, and employment agencies from requesting or using information about an individual’s credit history, including credit reports, scores, or details provided directly by the applicant or employee regarding debts, bankruptcies, judgments, or liens. It also restricts employment decisions based on credit history, except for specific exemptions. These exemptions include positions subject to legal or regulatory requirements, law enforcement roles, jobs requiring bonding or security clearance, and certain positions involving fiduciary responsibilities or access to sensitive financial or security systems.
The law also applies to consumer reporting agencies, which are prohibited from including credit-related information in employment reports unless the position qualifies for an exemption. The scope of the statute indicates coverage for individuals located in New York even when applying for positions outside the state if their credit history is used for employment purposes.