On December 19, 2025, Governor Kathy Hochul signed Senate Bill 3072, amending New York’s General Business Law to significantly restrict the use of an applicant’s or employee’s credit history in employment decisions. Effective April 28, 2026, employers may not request or use credit history information unless a narrow statutory exception applies.

The law defines “credit history” broadly and covers credit reports and scores, payment history, bankruptcies, judgments, liens, and even credit information voluntarily disclosed by an applicant or employee.

It is considered a discriminatory practice to inquire into or rely on credit history unless the role qualifies for an exception. Key exceptions—most relevant to private employers—include non-clerical roles with regular access to trade secrets or sensitive security information; positions with signatory or fiduciary authority over third-party funds or financial agreements of $10,000 or more; and roles with duties that allow modification of digital security systems. Additional exceptions apply where credit checks are required by law, for certain law enforcement or high-trust public roles, positions requiring bonding, or roles requiring security clearance.

The law does not override local laws that provide equal or greater protections, including New York City’s Stop Credit Discrimination in Employment Act. It also limits consumer reporting agencies from providing credit reports for employment purposes unless an applicable exception exists.