{"id":145304,"date":"2026-02-25T21:50:08","date_gmt":"2026-02-25T21:50:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/145304\/"},"modified":"2026-02-25T21:50:08","modified_gmt":"2026-02-25T21:50:08","slug":"credit-bureau-pulls-in-employment-state-law-limitations-and-their-effect-on-motor-vehicle-records-fbt-gibbons-llp","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/145304\/","title":{"rendered":"Credit Bureau Pulls in Employment: State Law Limitations and Their Effect on Motor Vehicle Records | FBT Gibbons LLP"},"content":{"rendered":"

Effective April 18, 2026, New York State employers will be restricted from obtaining or using a \u201cconsumer credit history\u201d for hiring and personnel decisions, just as New York City employers have been for a number of years. The state-wide changes are a result of\u00a0S03072,<\/a> which New York Governor Kathy Hochul signed on December 19, 2025, amending New York State\u2019s Fair Credit Reporting Act.<\/p>\n

Under the amendment, unless the employer (or the position being filled) falls within one of a few very narrow exceptions, an employer may not obtain or use an individual\u2019s \u201cconsumer credit history.\u201d As defined, that phrase includes: (1) a consumer credit report; (2) credit score; or (3) information an employer obtains directly from the individual regarding (a) details about credit accounts, including the individual\u2019s number of credit accounts, late or missed payments, charged-off debts, items in collections, credit limit or prior credit report inquiries; or (b) bankruptcies, judgments or liens.<\/p>\n

The amendment to the Fair Credit Reporting Act mirrors New York City\u2019s Stop Credit Discrimination in Employment Act (SCDEA) and places New York among a growing group of states and municipalities that restrict employer use of credit information. The amended statute makes New York the 11th state to enact such consumer credit-history restrictions.<\/p>\n

See the chart below summarizing jurisdictions with laws similar to New York\u2019s statute.<\/p>\n

NY Law\u2019s Impact on MVR Pulls and the FCRA<\/p>\n

Although New York State\u2019s newly amended statute limits the use of \u201cconsumer credit history\u201d in employment decisions it will not affect a commercial motor carrier\u2019s ability to pull and use motor vehicle records (MVRs) to assess job applicants at hiring and periodically thereafter.<\/p>\n

Because MVRs are not credit reports, the statutory amendment will not apply directly to MVRs. Moreover, federal laws\u2014specifically those enforced by the Federal Motor Carrier Safety Administration (FMCSA)\u2014require carriers to obtain an MVR when a driver is hired, to pull an updated MVR every 12 months thereafter, and to maintain these records in the Driver Qualification File (DQF) in accordance with 49 CFR 391.51. Because these obligations are tied directly to federal safety compliance and monitoring of commercial drivers, New York\u2019s new credit\u2011history restrictions could not interfere with a carrier\u2019s ability to meet FMCSA requirements.<\/p>\n

However, MVRs remain \u201cconsumer reports\u201d under the federal Fair Credit Reporting Act (FCRA) at 15 U.S.C. \u00a7 1681a(d)(1). The FCRA defines \u201cconsumer report\u201d broadly to include any background information provided by a consumer reporting agency that bears on a person\u2019s character, general reputation, personal characteristics, or mode of living\u2014criteria that clearly encompass a driver\u2019s safety record, violations, suspensions, and accident history. Because employers typically obtain MVRs through third\u2011party background screening companies that qualify as consumer reporting agencies, any MVR used for hiring or employment decisions triggers full FCRA compliance, including stand\u2011alone disclosures, written authorization, permissible\u2011purpose certification, and adverse\u2011action procedures.<\/p>\n

So, while New York\u2019s new law does not impede a carrier\u2019s ability to pull MVRs, commercial carriers must continue treating MVRs as consumer reports under federal law. Moreover, New York City employers must also comply with the timing requirements of NYC\u2019s Fair Chance Act, separating review of credit reports (if permitted) and other non-criminal background check information from criminal background checks. NYC\u2019s Fair Chance Act guidance states that employers should consider all non-criminal background check information prior to a conditional offer being extended, providing that: \u201cBecause it is often impracticable to separate criminal and non-criminal information contained in a driving abstract, employers must not review driving abstracts until after a conditional offer has been extended.\u201d<\/p>\n

Best Practices to Avoid Violations<\/p>\n

1. Make it clear you do NOT obtain consumer credit reports.<\/p>\n

Communicate in your hiring materials, consent forms, and policies that your company does not request or use consumer credit reports for any employment decision, unless the employer (or the position being filled) falls within a legal exception. This avoids confusion in jurisdictions where credit checks are restricted or prohibited.<\/p>\n

2. Avoid using credit history, credit scores, or financial account data in any employment decision.<\/p>\n

Ensure human resources, recruiting teams, and others understand that credit\u2011related information is off\u2011limits unless a legal exemption under the state or local law applies. This includes credit scores, debt information, bankruptcies, or any financial account details.<\/p>\n

3. Obtain authorization forms and indicate authorization ONLY applies to MVRs.<\/p>\n

Create and use a disclosure that informs the applicant of the information that will or will not be used for employment purposes, and make sure it contains an authorization\/consent to use the information. Your disclosure and authorization\/consent language should explicitly state that it covers MVRs only, not credit reports. This distinction is essential in states and cities with strict credit\u2011check bans.<\/p>\n

4. Emphasize that MVR checks are required under federal FMCSA regulations.<\/p>\n

Make sure applicants understand that MVRs are pulled because federal law requires them, not because the company is evaluating the applicant\u2019s financial background. Ensuring that applicants understand the reason for using MVRs helps avoid misunderstandings and reinforces adherence with state and federal laws.<\/p>\n

5. Reassure applicants that no credit\u2011related information will be requested, reviewed, or considered.<\/p>\n

In materials, state plainly that your company does not seek nor evaluate any credit\u2011related information at any stage of the hiring or employment process, unless same is permitted under the applicable law. This protects your company in jurisdictions where even requesting credit information is prohibited.<\/p>\n

6. Audit your background screening vendor regularly.<\/p>\n

Confirm that vendors who conduct background screening on applicants do not supply credit history for New York applicants unless permitted; that their MVR retrieval and reporting process remains fully FCRA\u2011compliant; and that they understand and are prepared for New York State\u2019s effective date (April 18, 2026) for the new credit\u2011history restrictions. If applicable, confirm that vendors comply with the staged background check process for New York City employers and employees. Finally, conduct periodic reviews of your background screening provider to ensure they are aligned with both federal and state requirements. These practices could protect your company from inadvertent violations and help you maintain a legally sound hiring process.<\/p>\n

Key Takeaways<\/p>\n

New York State\u2019s new law adds another layer of complexity to the patchwork of state and local credit\u2011history restrictions. Fortunately for commercial carriers, the use of MVRs remains permissible in New York because they are not considered \u201cconsumer credit history\u201d under the new statute. However, federal FCRA rules still apply, meaning carriers must continue treating MVRs as consumer reports and follow all associated disclosure, authorization, and adverse\u2011action requirements.<\/p>\n

By updating authorizations and consents to pull MVR forms, training staff, and maintaining strict FCRA compliance, commercial carriers can continue their essential safety\u2011driven MVR screening practices while staying fully compliant with both state and federal law.<\/p>\n","protected":false},"excerpt":{"rendered":"Effective April 18, 2026, New York State employers will be restricted from obtaining or using a \u201cconsumer credit…\n","protected":false},"author":2,"featured_media":145305,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[9,24,55,54,56],"class_list":{"0":"post-145304","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-new-york","9":"tag-new-york-city","10":"tag-new-york-city-headlines","11":"tag-new-york-city-news","12":"tag-ny"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/145304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=145304"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/145304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/145305"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=145304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=145304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=145304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}