New York State now significantly limits use of consumer credit history for employment decisions

Effective April 18, 2026, an amendment to New York State’s (NYS) Fair Credit Reporting Act (FCRA) has severely limited the ability of employers in New York to use the consumer credit history of job applicants and employees in employment decisions. The provisions of the amendment mirror many of the requirements of New York City’s Stop Credit Discrimination in Employment Act (SCDEA), which amended the NYC Human Rights Law (NYCHRL) in 2015. The new NYS FCRA amendment does not, however, preempt the SCDEA provisions in the NYCHRL. Accordingly, employers in New York City will now need to comply with the City’s requirements as well as the new NYS FCRA provisions.

What the amendment does

The new amendment to the FCRA makes it unlawful, throughout New York State, for an employer, labor organization, or employment agency to request or to use, for employment purposes, the consumer credit history of an applicant for employment or employee, or otherwise discriminate against an applicant or employee with regard to hiring, compensation, or the terms, conditions, or privileges of employment based on the consumer credit history of the applicant or employee. The amendment broadly defines consumer credit history as including an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by: 

• A consumer credit report; 

• A credit score; or