What Employers Need to Know About New York’s New Credit Check Law
As of April 18, 2026, employers screening or employing workers in New York face a significant new hiring compliance requirement. In most cases, employers will no longer be permitted to use an applicant’s or employee’s credit history when making employment decisions.
That includes decisions related to:
Hiring
Promotion
Compensation
Reassignment
Retention
Termination
For many employers, this is an important reminder that screening practices need to keep pace with changing employment laws.
What the Law Prohibits
Outside of limited exceptions, using a person’s credit history against them in employment decisions may now be considered discrimination under New York law.
The law applies to information such as:
Credit reports
Credit scores
Payment history
Creditworthiness or credit standing
This reflects a broader trend across the country toward limiting screening tools that are not closely tied to actual job performance.
New York now joins other states that have enacted similar restrictions, along with cities such as New York City, Chicago, Philadelphia, and Washington, D.C.
Which Employers Need to Pay Attention
This law is not limited to employers with a physical office in New York.
What matters is where the employee or applicant is located.
That means a company headquartered in another state that hires or employs a remote worker based in New York may still need to comply with this law for that individual.
For employers with remote teams or multi-state hiring activity, this creates another layer of complexity that should not be overlooked.
Are There Exceptions?
Yes. Certain positions may still qualify for credit history checks under the law.
Exceptions may apply where a role:
Requires security clearance
Is in law enforcement
Includes financial authority or responsibility
Involves regular access to trade secrets
Is otherwise required by state or federal law or regulatory rules
Because these exceptions are specific and may require careful interpretation, employers should avoid making assumptions about whether a role qualifies.
Practical Steps Employers Should Take Now
If your organization hires in New York or employs remote workers there, now is the time to review your process.
1. Review Background Check Procedures
Confirm whether credit checks are being requested as part of your hiring workflow.
2. Notify Screening Providers
Background screening companies should be instructed not to run credit history reports for New York-based applicants or employees unless a valid exception applies.
3. Update Hiring Documents
Applications, disclosure forms, onboarding paperwork, and hiring templates should be reviewed to remove outdated references to credit checks where necessary.
4. Train Hiring Managers
Managers involved in hiring should understand that long-standing practices may no longer be permitted.
5. Consider Multi-State Consistency
Many employers are simplifying their hiring practices by limiting credit checks to only the narrow roles where they are clearly required.
Why This Matters
Hiring compliance issues often arise from routine processes that have not been updated.
Credit checks may have been part of your hiring process for years. That does not mean they remain lawful or appropriate under current rules.
For employers hiring in New York, or anywhere employees may be working remotely from New York, this is an area worth reviewing now rather than after a complaint or compliance issue arises. Trusted advisors helping clients hire across state lines should flag this now.