February Tip of the Month: New York Prohibits Use of Consumer Credit History Checks in Employment-Related Decisions

Effective April 18, 2026, an amendment to the New York State Fair Credit Reporting Act will prohibit employers from requesting or relying upon an applicant’s or employee’s “consumer credit history” when making employment-related decisions, except in narrow circumstances. 

The Act broadly defines “consumer credit history” as including “an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by: (1) a consumer credit report; (2) credit score; or (3) information an employer obtains directly from the individual regarding [various categories of credit-related information].” Employers should promptly review their hiring and personnel practices to ensure that credit-related information is neither requested, nor used, in a manner that violates the Act.