{"id":203447,"date":"2026-04-20T16:24:08","date_gmt":"2026-04-20T16:24:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/203447\/"},"modified":"2026-04-20T16:24:08","modified_gmt":"2026-04-20T16:24:08","slug":"new-york-state-limits-use-of-credit-history-in-hiring-and-job-decisions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/203447\/","title":{"rendered":"New York State limits use of credit history in hiring and job decisions"},"content":{"rendered":"<p>Over the weekend, <a class=\"externallink\" title=\"\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/spectrumlocalnews.com\/nys\/rochester\/news\/2026\/04\/17\/new-law-bans-credit-checks-for-most-employers-\">a new law went into effect in New York State<\/a> limiting employers from using credit history to make hiring or job decisions, like compensation.<\/p>\n<p>Now, more than 10 states have such laws on the books.<\/p>\n<p>When employers look at credit checks, Julie Schweber at the Society for Human Resource Management, or SHRM, said they\u2019re looking for a few key things.<\/p>\n<p>\u201cDo they pay on time? Do they have account balances? Have they declared bankruptcy?\u201d Schweber said. \u201cWe&#8217;re looking from an employer lens. \u2018Gee, is this person able to handle money skillfully? Do they have a, demonstrate an overall sense of reliability?\u2019\u201d<\/p>\n<p>Though Barbara Kiviat, an assistant professor in Columbia University\u2019s Department of Sociology, said the employers she\u2019s interviewed mentioned another reason, too.<\/p>\n<p>\u201cIt helps them prove to other sorts of stakeholders, regulators, investors, insurers, that they&#8217;re doing their due diligence in screening their employees,\u201d Kiviat said. <\/p>\n<p>Some states have limited the use of credit histories in employment decisions because of the concern that having bad credit can make it hard to get a job. <\/p>\n<p>Leora Friedberg at the University of Virginia studied the effects of the laws on people experiencing financial distress, which she said is correlated with credit history.<\/p>\n<p>\u201cThey have shorter time in unemployment, they get a job sooner, and, actually, we find that the quality of the job they get seems to be better,\u201d Friedberg said.<\/p>\n<p>That means higher pay. And, Friedberg said, they stay in that job longer, too. <\/p>\n<p>Related Topics<\/p>\n","protected":false},"excerpt":{"rendered":"Over the weekend, a new law went into effect in New York State limiting employers from using credit&hellip;\n","protected":false},"author":2,"featured_media":203448,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[78097,17450,37312,9,11,10,49,51,50],"class_list":{"0":"post-203447","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-credit-history","9":"tag-employers","10":"tag-job-applications","11":"tag-new-york","12":"tag-new-york-headlines","13":"tag-new-york-news","14":"tag-new-york-state","15":"tag-new-york-state-headlines","16":"tag-new-york-state-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/203447","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=203447"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/203447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/203448"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=203447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=203447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=203447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}