Overview
- New York’s amended Fair Credit Reporting Act makes it unlawful for employers, labor groups, and agencies to request or use consumer credit history for hiring, pay, promotion, reassignment, or retention.
- Consumer credit history covers more than a credit report and score, reaching information an applicant or employee shares about debts, late payments, collections, credit limits, inquiries, bankruptcies, judgments, or liens.
- The law allows only narrow, role-based carveouts such as positions required by law or a self‑regulatory body, peace or police officer roles, jobs that require bonding or a security clearance, roles with authority to control $10,000 or more, certain non‑clerical posts with access to trade secrets or national security data, and jobs that can change digital security systems.
- Background-check vendors must exclude creditworthiness and similar credit data from employment reports unless a stated exemption applies.
- New York City’s stricter local regime still applies, so employers should update policies, job descriptions, and records to justify any exemption and align multistate practices as New York becomes the 11th state with such limits.