BUFFALO, N.Y. (WGRZ) — A new New York State law goes into effect Saturday that limits how employers can use your credit history. The Governor signed this into law late last year, and it’s aimed at making hiring decisions more equitable.
New York will join ten other states Saturday in making it illegal for most employers to use your credit history, meaning things like your credit score and details about late payments, to make decisions about your employment. Those decisions could include hiring you, but also include promotions, your pay, and more.
New York City has had a similar law on the books for more than ten years.
“It does have a negative impact on folks who have had bad financial luck and don’t have good credit history, so, and that’s the intent behind this law. If you read the sponsors comments on it, really the idea is, we want to get rid of barriers to employment. Particularly if somebody is already, you know, had some bad luck financially, and they’re trying to climb out of that and make their life better, then making it harder for them to get a job is only going to make things worse,” said attorney Jared Cook.
And if you’re an employer, he says now is a good time to make sure you’re following the law if you won’t be allowed to do credit checks after Saturday.
