New York State Prohibits Employers’ Consideration of Credit History in Most Employment-Related Decisions

by Catherine Weiss Butto - Spencer Fane

Effective April 18, 2026, an amendment to the New York State Fair Credit Reporting Act1 will ban employers from using an applicant’s or employee’s credit history for employment decisions, such as hiring or determining employee compensation. Narrow exceptions apply. This new prohibition generally expands New York City’s Stop Credit Discrimination in Employment Act, which has banned NYC employers from engaging in similar practices since 2015, subject to limited exemptions. As of April 18, 2026, comparable restrictions will apply statewide.

Read more: https://www.spencerfane.com/insight/new-york-state-prohibits-employers-consideration-of-credit-history-in-most-employment-related-decisions/

Credit checks for employment

by Chase

When applying for a job, your potential employer may run a credit check. A credit check is otherwise known as a credit inquiry, where someone pulls a summary of your credit. This can’t happen without your written consent. There are two kinds of inquiries—hard and soft. When an employer runs a credit check, this is a soft inquiry. It will not affect your score, unlike a hard inquiry, which can.

Read more: https://www.chase.com/personal/credit-cards/education/basics/employer-credit-check