February Tip of the Month: New York Prohibits Use of Consumer Credit History Checks in Employment-Related Decisions
Effective April 18, 2026, an amendment to the New York State Fair Credit Reporting Act will prohibit employers from requesting or relying upon an applicant’s or employee’s “consumer credit history” when making employment-related decisions, except in narrow circumstances.
The Act broadly defines “consumer credit history” as including “an individual’s credit worthiness, credit standing, credit capacity, or payment history, as indicated by: (1) a consumer credit report; (2) credit score; or (3) information an employer obtains directly from the individual regarding [various categories of credit-related information].” Employers should promptly review their hiring and personnel practices to ensure that credit-related information is neither requested, nor used, in a manner that violates the Act.
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Before proceeding, please note: If you are not a current client of Perkins Coie, please do not include any information in this e-mail that you or someone else considers to be of a confidential or secret nature. Perkins Coie has no duty to keep confidential any of the information you provide. Neither the transmission nor receipt of your information is considered a request for legal advice, securing or retaining a lawyer. An attorney-client relationship with Perkins Coie or any lawyer at Perkins Coie is not established until and unless Perkins Coie agrees to such a relationship as memorialized in a separate writing.