New York bans most employer credit checks starting April 18, attorney says
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Summary
A new New York state rule effective April 18 will bar most employers from asking about applicants' credit histories; an employment lawyer told BronxNet the rule allows exceptions when a job’s duties are financially sensitive and requires employers to document their justification.
A new New York law that takes effect April 18 will prohibit most employers, staffing firms and labor organizations from asking job applicants about their credit histories, host David Lesh said on BronxNet’s "Today's Verdict." Patrick J. Boyd, founder of the Boyd Law Group, told the show the measure covers credit scores, bankruptcies, collections and other financial‑history questions.
“Starting April 18, a New York state employer cannot ask an employee about their credit when they're applying for a job,” Lesh said. Boyd added that the law follows a 2015 New York City restriction and is part of a broader trend limiting pre‑offer inquiries into credit, criminal records and salary history.
Boyd said the statute uses a reasonableness standard: employers may still obtain credit information when the job duties have a clear, reasonable relationship to financial responsibilities. “For example, if you're hiring somebody to be the treasurer or the CEO of your company… understanding their financial record seems to be important,” Boyd said. He said employers who seek credit information should keep records showing the job title, duties and the justification for the inquiry to defend their decision.
On enforcement, Boyd told viewers he expects the rule will mostly act as a prophylactic—deterring overly broad inquiries—rather than producing frequent lawsuits. “I don't think there's going to be a lot of prospective job applicants… who ultimately bring claims,” he said.
Lesh and Boyd also discussed related screening practices. Boyd noted employers increasingly review social media and described recent cases in which off‑work political posts were screenshotted and led to dismissals; he emphasized that actions based on publicly visible material remain lawful under other legal theories.
Why it matters: employment‑credit checks can disproportionately affect people who have medical debt, unpaid tuition or other non‑fraud financial burdens, Boyd said. He recommended that employers assess whether a role truly requires a credit check and document the job‑relevance of any inquiry.
The law becomes effective April 18. Employers seeking to use credit information for job decisions should consult counsel and retain the job‑duty documentation Boyd described; job seekers with questions can consult local legal aid or an employment attorney.
