New York is a leader in protecting workers from unfair discrimination in the workplace. One of several areas in which that is true is employment discrimination based on credit checking. This employment practice has been illegal in New York City for more than a decade, and it is now illegal in New York State as well. If you have questions about anti-discrimination law in New York -- and whether your employer has run afoul of it – you owe it to yourself to speak to an experienced New York employment discrimination lawyer.
Back in December 2025, Governor Hochul signed Senate Bill 3072 into law, which substantially limits the circumstances under which an employer may use an employee’s (or job candidate’s) credit report to make employment-related decisions (such as hiring, firing, promotion, compensation, and other terms and conditions of employment). That law went into effect earlier this month on April 18.
The law is an amendment to the state’s Fair Credit Reporting Act, and it imposes strict limitations on when an employer can make decisions based (in whole or in part) on an employee’s (or job candidate’s) credit history. The law defines “consumer credit history” as an individual’s “credit worthiness, credit standing, credit capacity, or payment history.” That history includes consumer credit reports, credit scores, and “information an employer obtains directly from the individual regarding details about credit accounts, including the individual’s number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limit, prior credit report inquiries, or bankruptcies, judgments or liens.”
In addition to banning the use of an employee’s (or job candidate’s) credit history to make employment-related decisions, the new law also bans employers from even asking or obtaining credit history for employment-related purposes.
Workers should keep in mind that they need not work for a New York employer to be protected by this new law. Say, for example, you work for an Ohio employer but work remotely from your home in New York State. In this scenario, your employer likely must comply with New York State’s new law or else face potential liability.
Narrow Exceptions to the New Protection’s Coverage
The new law does carve out some exceptions, but they are few. They include employers required to do so by state or federal law, as well as employers that are self-regulatory organizations under the federal Securities Exchange Act of 1934. Additionally, peace officers/police officers/employees who are subject to a Department of Investigation background investigation, positions requiring bonding under federal, state, or city law, positions requiring a security clearance under federal or state law, and employees whose jobs involve “responsibility for funds or assets worth $10,000 or more” are not protected by the new law.
SB 3072 closely mirrors the Stop Credit Discrimination in Employment Act, which New York City enacted in 2015. The SCDEA expressly stated that “consumer credit history is rarely relevant to employment decisions, and consumer reports should not be requested for individuals seeking most positions in New York City.”
New York City and New York State continue to expand legal protections that safeguard workers from workplace discrimination. If you believe you have been the victim of illegal employment practices such as discrimination, you owe it to yourself to investigate your legal options. The New York employment discrimination attorneys at Phillips & Associates, PLLC are here to help. We are fully versed in all relevant federal, state, and city laws, and are equipped to help you get justice for the discrimination-based harm you have endured. To find out more about how we can help you, contact us online or call (866) 229-9441 to schedule a free, confidential consultation today.