Hunton Employment & Labor Perspectives

Effective April 18, 2026, New York amended its General Business Law to limit employers’ use of a person’s consumer credit history in certain hiring and employment decisions.  In doing so, New York State builds on the precedent set by New York City and several other states with similar laws.

Specifically, section 380-b of New York’s General Business Law now includes the following language:

Except as provided in this subdivision, it shall be an unlawful discriminatory practice for an employer, labor organization, employment agency or any agent thereof 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. 

N.Y. Gen. Bus. Law § 380-b(d)(1).

The law defines “consumer credit history” broadly as “an individual's credit worthiness, credit standing, credit capacity or payment history” as shown in a consumer credit report, credit score, or certain information the employer obtains directly from the individual.  N.Y. Gen. Bus. Law § 380-a(w).  It specifically includes “any written or other communication of any information by a consumer reporting agency that bears on a consumer's creditworthiness, credit standing, credit capacity or credit history.” Id.

This restriction does not apply to all employment decisions; there are several enumerated exceptions, such as certain positions with law enforcement, data security, financial and fiduciary responsibilities, or where background checks are mandated by state or federal law.  N.Y. Gen. Bus. Law § 380-b(d)(2).  If an employer believes an exception may apply, it should confirm with legal counsel.

The amendment conceptually aligns New York’s state law with New York City’s Stop Credit Discrimination in Employment Act.  Since 2015, New York City law has considered it an “unlawful discriminatory practice for employers, labor organizations, and employment agencies to request or use the consumer credit history of an applicant or employee for the purpose of making any employment decisions, including hiring, compensation, and other terms and conditions of employment.”  N.Y.C. Admin. Code § 8-107(24).

Additionally, there are several other states with similar laws.  For example, California law states that an “employer or prospective employer shall not use a consumer credit report for employment purposes” with limited exceptions. Cal. Lab. Code § 1024.5.  Likewise, Illinois law, with some exceptions, provides that an employer shall not do any of the following: “(1) Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment because of the individual's credit history or credit report.  (2) Inquire about an applicant's or employee's credit history.  (3) Order or obtain an applicant's or employee's credit report from a consumer reporting agency.”  820 Ill. Comp. Stat. Ann. 70/10.

Overall, employers with operations in New York or employees working in New York should seek legal counsel regarding whether the amended law restricts their consideration of consumer credit history in employment decisions.