Important Information Regarding New York State Employment Credit Checks Restrictions
If you run credit checks for New York-based positions, action is required to prevent delays
Effective April 18, 2026, employers in New York State will be restricted from using consumer credit history in employment decisions.
This law allows for a narrow set of exemptions that may permit credit checks for certain roles, including:
- The employer is required to obtain or consider credit information under state or federal law, or by a self‑regulatory organization as defined in the Securities Exchange Act of 1934.
- The position is for a peace officer, police officer, or another law enforcement or investigative role within a governmental agency.
- The role is an appointed position subject to a state‑required background investigation and involves a high degree of public trust.
- The position requires the employee to be bonded under state or federal law.
- The role requires a federal or state security clearance.
- The position is non‑clerical and involves regular access to trade secrets, intelligence information, or national security information.
- The individual has signatory authority over $10,000 or more in third‑party funds or assets, or holds a fiduciary role permitting them to enter financial agreements of $10,000 or more on the employer’s behalf.
- The role includes regular duties involving the modification of digital security systems that protect the employer’s or its clients’ networks or databases.
If your organization orders credit reports as part of your background screening process for New York-based positions, action is required before the April 18 effective date.
Employers who qualify for an exemption will need to submit a certification confirming that their use of credit information falls within a permitted category, using this
link.
Employers who do not qualify should notify us to update their screening packages to remove credit reports for New York positions to avoid delays in processing.
We recommend reviewing the exemptions carefully and consulting legal counsel to determine whether your use of credit information qualifies. If you have questions about how this change may affect your background screening program, please reach out to our team at .
