👋 Message from Doug
As we move further into 2026, changes to employment screening laws continue to expand beyond major cities and into statewide requirements.
This month, we want to make you aware of an important update affecting New York employers and the use of credit checks for employment purposes. While the change does not take effect until April, now is the right time to review your hiring practices and prepare.
🚨 New York Employment Credit Check Restrictions
Effective April 18, 2026
New York State has enacted a significant change to its employment screening laws that restricts the use of consumer credit history in hiring decisions.
On December 19, 2025, Governor Kathy Hochul signed Bill S03072 into law, amending the New York State Fair Credit Reporting Act. Beginning April 18, 2026, employers across New York State will generally no longer be permitted to request or rely on an applicant’s or employee’s consumer credit history when making employment-related decisions — except in limited, legally defined circumstances.
This change expands protections that previously applied mainly within New York City to employers statewide.
🔍 How This Impacts Background Screening
The new law affects both employers and background screening providers.
Starting April 18, 2026:
- Employers may not use consumer credit history for New York-based positions unless a statutory exemption applies
- Consumer Reporting Agencies (CRAs) may not provide employment credit reports for New York positions unless an exemption is validated
Credit reports will only be available where use is legally required or expressly permitted by law.
⚠️ Limited, Role-Specific Exceptions
The law includes narrow exemptions, which may apply to certain roles, including:
- Regulated financial positions
- Law enforcement roles
- Positions requiring bonding or security clearance
- Other specifically defined fiduciary or security-sensitive roles
Exemptions are role-specific, not employer-wide. Credit history will only be provided when an applicable exemption is confirmed.
✅ Background Screening Services Not Affected
This law applies only to the use of consumer credit history for employment purposes in New York.
The following services remain available where otherwise permitted by law:
- Criminal background checks
- Employment and education verifications
- Professional license verification
- Motor vehicle records (MVRs)
- Drug testing
- Non-employment credit reports (such as tenant screening)
📝 What You May Need to Do Now
To prepare for the April 18, 2026 effective date, employers should:
- Review hiring and screening practices for New York-based positions
- Identify roles that may qualify for a statutory exemption
- Be prepared to provide confirmation when credit review is legally required
- Update internal policies and hiring workflows as needed
🏢 How The Screening Source Can Help
At The Screening Source, we help employers navigate changing screening requirements by:
- Reviewing role-based screening needs
- Identifying when credit checks are permitted
- Ensuring compliance with evolving state and local laws
- Offering flexible, à la carte screening options — no bundles or unnecessary searches
If you have questions about how this New York law may affect your hiring process, we’re here to help.
🙌 Thank You
Thank you for trusting The Screening Source as your background screening partner.
If you’d like to review your screening practices or discuss whether any of your roles qualify for an exemption, reply to this email — we’re happy to assist.
Warm regards,
Doug Hurne
CEO, The Screening Source, LLC
🌐 thescreeningsource.com
