Under New York Senate Bill 3072, employers are restricted from using credit history when making employment decisions. The law will go into effect on April 18, 2026. Consumer credit history refers to creditworthiness, payment history, standing, or capacity, as well as the credit score or other information related to credit accounts. These details may include prior credit inquiries, missed or late payments, number of credit accounts, items in collections, limits, judgments, liens, or bankruptcies.
Some exceptions apply:
- Employers or agents required by federal or state law (or by self-regulatory organizations) can still use credit history for employment decisions.
- Law enforcement officials may use this information, including police offers.
- Individuals applying for jobs as peace officers may face credit inquiries.
- Those filling positions that meet any of the following criteria may also use credit details:
- Subject to background investigation by a state agency
- Regular access to trade secrets, national security data, or intelligence information
- Bonded under federal or state law
- Possessing security clearance under the law
- Signatory authority over third-party assets or funds valued at $10,000+
- Regular duties involving the modification of digital security systems
View the full text of the law here.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
