Credit Scores No Longer Used for Most NY Job Applications Under New Law

A new New York State law is now in effect, changing how employers evaluate job candidates. As of April 18, employers can no longer use someone's credit history when making hiring decisions.

The law makes it illegal for employers to request or rely on information like credit scores, late payments, or debt history when deciding whether to hire, promote, or even fire someone.

What “Credit History” Includes Under the New Law

The restriction applies broadly to what’s considered “consumer credit history,” including credit scores, payment history, collections, bankruptcies, and even the number of credit accounts someone has.

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That means employers can’t factor in financial struggles that may show up on a report, something advocates say often doesn’t reflect a person’s ability to do a job.

Exceptions: When Employers Can Still Check Credit

There are some limited exceptions to the law. Employers can still run credit checks for certain positions, including:

• Law enforcement or investigative roles
• Jobs requiring security clearance
• Positions involving large financial responsibility
• Roles with access to trade secrets or sensitive data

But, in those cases, employers must be able to justify why a credit check is necessary.

What You Should Still Know About Your Credit

Even though employers can’t use credit history in most hiring decisions anymore, experts say it’s still important to keep an eye on your credit report for financial health reasons.

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New York now joins several other states with similar laws aimed at making hiring practices more fair and focused on skills, not financial setbacks.