NEW YORK — A major shift in hiring practices is set to take effect this month as New York employers prepare for a new law prohibiting the use of job applicants’ credit scores and credit histories in most hiring decisions.
Beginning April 18, 2026, employers across the state will no longer be permitted to factor a candidate’s credit profile into employment decisions—marking a significant change aimed at expanding job access during ongoing economic uncertainty.
The law includes limited exceptions. Credit checks will still be allowed for certain roles, including law enforcement positions, jobs involving high-level access to trade secrets, and positions with responsibility for managing financial portfolios exceeding $10,000. Additionally, applicants for roles requiring federal or state security clearance, government background checks, or bonding under state or federal law will remain subject to credit review requirements.
Employment attorney Steven Mitchell Sack, known as “The Employee’s Lawyer,” says the change could have an immediate and widespread impact on hiring practices.
“This law removes a major barrier to employment for countless New Yorkers,” Sack said. “In today’s economic climate, many qualified candidates have faced financial setbacks that have nothing to do with their ability to perform a job. Employers should be evaluating skills and experience—not personal financial history.”
Advocates say the measure addresses long-standing concerns that credit checks disproportionately exclude otherwise qualified candidates, particularly those recovering from financial hardship. Supporters also argue that credit history is not a reliable predictor of job performance and raises unnecessary privacy concerns.
With the implementation deadline just weeks away, employers are being urged to review and update their hiring policies to ensure compliance.
