Effective as of April 18, 2026, S3072—signed into law December 2025—amends the New York Fair Credit Reporting Act to prohibit employers from requesting or relying on an applicant’s or employee’s consumer credit history to make employment-related decisions, with limited exceptions. Since 2015, New York City employers have been subject to credit check restrictions under the New York City Stop Credit Discrimination in Employment Act. This amendment extends comparable restrictions statewide and makes New York the latest in a growing number of jurisdictions banning the use of credit history in employment. Review these highlights to better understand the amendment and the steps you should consider taking now.
General Prohibitions
The amendment makes it an “unlawful discriminatory practice” for an employer, labor organization, employment agency, or any agent from requesting or using an applicant’s or employee’s “consumer credit history” to make decisions regarding:
- Hiring;
- Termination;
- Promotion;
- Demotion;
- Discipline;
- Compensation; or
- Terms, conditions, or privileges of employment.
“Consumer Credit History”
The amendment prohibits the use “consumer credit history,” defined as an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by:
- Consumer credit reports;
- Credit score; or
- Information obtained directly from the individual regarding (1) credit account details, including payment history, charged-off debts, items in collections, credit limit, or prior credit report inquiries; or (2) bankruptcies, liens, or judgments.
It also includes any communication of information by a consumer reporting agency related to a consumer’s creditworthiness, credit standing, credit capacity, or credit history.
Exemptions
The amendment provides a narrow list of exemptions permitting an employer to request or use consumer credit history for employment purposes if:
- The employer or agent is required by state or federal law, or a self-regulatory organization as defined under the Securities Exchange Act;
- The individual is applying for or employed as a peace or police officer, or in certain law enforcement positions;
- The individual is in certain positions subject to background investigation by a state agency;
- The individual is required to be bonded under state or federal law;
- The individual is required to possess security clearance under federal or state law;
- The individual is in a non-clerical position with regular access to trade secrets, or intelligence or national security information;
- The individual has signatory authority over third-party funds or assets worth at least $10,000; or has the authority to enter financial agreements worth at least $10,000 on behalf of the employer; or
- The individual’s regular duties allow them to modify digital security systems established to prevent unauthorized use of the employer’s or client’s networks or databases.
Interplay with Other Credit Check Restriction Laws
The amendment provides that it does not exempt an employer from complying with “any local law, ordinance or regulation” that provides greater protection to an employee or applicant. Accordingly, NYC employers subject to credit check restrictions under the New York City Stop Credit Discrimination in Employment Act now must apply whichever law provides the greatest employee protection. Additionally, employers operating in other states or localities with similar laws also must account for different credit-check restrictions across the jurisdictions. These include:
- State laws in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.
- In addition to New York City, local laws in the District of Columbia; Chicago, Illinois; Cook County, Illinois; Madison, Wisconsin; and Philadelphia, Pennsylvania.
New York employers remain subject to requirements under the federal Fair Credit Reporting Act.
Employer Takeaways
The amendment is now effective and requires immediate compliance. Unless any exemption applies, employers should take the following steps:
- Revise hiring policies and procedures to eliminate credit check requirements;
- Revise job applications, offer letters, termination letters, and other documentation involving employment-related decisions to eliminate credit check questions or references;
- Train appropriate personnel on the amendment’s requirements and restrictions;
- Review contracts with third-party screening vendors to ensure “consumer credit history” is not provided; and
- Ensure compliance with all applicable federal, state, and local credit check restriction laws.
If you have any questions related to the amendment, or need assistance with compliance obligations, please feel free to reach out to the NFC Attorney with whom you typically work or call us at 973.665.9100.