New York: New limits imposed on employer use of consumer credit history

At a glance

• Governor Hochul signed S3072 on December 19, 2025, significantly limiting when credit history may be used in employment and licensing decisions.
• Effective April 18, 2026, employers, labor organizations, agencies and employment agencies may request or use credit history only in narrowly defined circumstances.
• Exemptions include roles requiring legally mandated checks, law‑enforcement positions, bonded or security‑clearance roles, high‑trust financial positions and roles with regular access to trade secrets.
• Outside these exemptions, credit history may not be used in hiring, compensation, promotion or any employment‑condition decisions.
• Employers should review hiring processes and position classifications ahead of the April 2026 effective date.

On December 19, 2025, Governor Hochul signed S3072 into law. Effective April 18, 2026, the new law significantly restricts when employers, employment agencies, labor organizations, and government agencies may use a person’s consumer credit history in employment or licensing decisions. Except for specific exemptions, such as legally mandated checks, police officers and certain law enforcement positions, positions requiring bonding or security clearance, high‑trust financial roles, or roles involving regular access to trade secrets, employers may not request or use credit history when making hiring, compensation or employment-condition decisions.