New York State Restricts Employer Use of Credit History – Effective April 18, 2026
Beginning April 18, 2026, most New York employers will be prohibited from requesting or using an applicant’s or employee’s credit history when making employment decisions. This includes information such as:
- Credit reports
- Credit scores
- Payment history
- Bankruptcies or similar credit‑related records
These restrictions apply to hiring, promotions, compensation decisions, and other employment‑related actions.
The law includes limited statutory exemptions for specific positions (for example, roles where credit checks are expressly required by law, or roles involving defined levels of financial or security responsibility). These exemptions are narrow and must be evaluated on a position‑by‑position basis.
Does this apply to my organization?
Yes, if your organization:
- Is a New York State employer; and
- Conducts background checks or employment screenings on applicants or employees; and
- Currently requests or uses credit reports, credit scores, or other credit history when making hiring, promotion, or compensation decisions.
Now what?
- Review your background check practices
- Confirm whether your hiring or screening processes include credit history inquiries.
- Identify whether any positions may qualify for a statutory exemption (exemptions are role‑specific and narrowly applied).
- Update Policies and Vendor Instructions
- Revise written background check and hiring policies as needed.
- Coordinate with background check vendors to ensure credit information is not requested or provided unless a lawful exemption applies.
- Train HR and Hiring Managers
- Ensure HR teams and hiring managers understand the new restrictions.
- Reinforce that credit history generally cannot be considered in employment decisions after April 18, 2026.
We are here to help!
If you would like assistance reviewing your background check practices, updating policy language, or evaluating whether any positions may qualify for an exemption, our team is here to help.
For support on this or other HR topics, please reach out to the OneGroup Human Resources team at HRConsulting@OneGroup.com.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.