New York’s 2026 Ban on Employment Credit Checks

For years, employers have used credit reports as a “character test” for job applicants. This practice unfairly punishes workers who have suffered medical emergencies, divorce, or layoffs. In 2026, New York State took a stand.

The New Law

Most employers in New York are now prohibited from requesting or using a consumer credit report for hiring, promotion, or retention decisions.

Exceptions

The law does contain specific exceptions for positions where credit history is directly relevant, such as:

• Positions with signatory authority over third-party funds or assets valued at over $10,000.
• Positions involving fiduciary duties to the employer.
• Police officers and peace officers.

Your Rights

If you are applying for a standard job (retail, administrative, service, tech, etc.) and the employer asks for permission to run a credit check:

1. They may be violating the law.
2. If they deny you the job: If an employer takes “adverse action” based on a credit report, they must provide you with a copy of the report and a “Summary of Rights.”

Litigation

If you lost a job opportunity because of an illegal credit check, or because of an error on a credit report that shouldn’t have been pulled in the first place, you may have claims under both the NY City/State Human Rights Laws and the FCRA.