New York Employers Beware: Credit Checks are Being Banned Statewide
Effective April 18, 2026, New York City's ban on credit searches in connection with employment decisions will now apply to all employers in New York State.
Credit Check Vendors:
The above language prohibits not only direct credit checks, but any "use for employment purposes [of] consumer credit history." Therefore, even use of the results of a credit check run by a third-party vendor is prohibited by the New York City and upcoming New York State ban.
Remedies:
Failure to abide by New York's now state-wide ban can trigger significant liabilities. The ban makes it an "unlawful discriminatory practice" to request or use an applicant's or employee's consumer credit history. In addition, failure to comply with the new ban exposes employers to civil liability for violations, including compensatory damages, attorney's fees, and costs, and, for willful violations, punitive damages.
The Bottom Line
Ahead of the April 18, 2026, credit search ban, New York State employers should update their applicable policies and practices in line with New York City employers - who have operated under the same ban for over a decade. Additionally, employers in New York should review all job postings and interview procedures to ensure compliance with the ban on credit checks.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client.
For further information please contact me at www.kmckernanlaw.com kevin@kmckernan.com or 718-317-5007.