At-a-Glance Compliance Overview

State Mini-FCRA Laws

New York has its own consumer reporting statute, the New York Fair Credit Reporting Act, codified at New York General Business Law Article 25 (§380 et seq.).

This law supplements the federal Fair Credit Reporting Act and governs how consumer reporting agencies collect, maintain, and report information used in employment background checks.

The statute imposes several requirements relevant to employment screening:

• Limits on the reporting of certain adverse information

• Restrictions on reporting criminal history information beyond defined time periods

• Accuracy and dispute resolution obligations for consumer reporting agencies

• Consumer notification and disclosure rights

Employers that use third-party background screening providers must ensure that the reports they receive comply with both the federal FCRA and New York’s additional reporting restrictions.

Criminal Record Reporting Rules

New York law places specific limits on how criminal history may be reported and used in employment decisions.

CRA Reporting Limits

Under General Business Law §380-j, consumer reporting agencies generally may not report certain adverse information older than seven years.

This rule applies to:

• arrests

• criminal charges

• civil judgments

• other adverse public records

Convictions are also subject to the seven-year reporting limit unless the salary for the position is expected to equal or exceed $25,000 annually. When the salary threshold is met, the reporting limitation does not apply.

Because most full-time employment positions exceed the $25,000 salary threshold, consumer reporting agencies often may report conviction records beyond seven years. Employers should nevertheless verify that the salary exception applies before relying on older convictions in background reports.

Arrest Records and Non-Convictions

Arrest records that did not result in conviction generally may not be reported unless the case remains pending. If a charge has been resolved without conviction, consumer reporting agencies must exclude that information from employment background reports once the applicable reporting period expires.

Sealed and Expunged Records

New York law also limits access to sealed criminal records. When records are sealed, employers generally may not inquire about or rely on those matters during the hiring process.

Fair Chance / Ban-the-Box Law

New York does not maintain a single statewide fair chance hiring law governing private employers. Instead, criminal history inquiry timing rules primarily arise from local ordinances, while the statewide framework focuses on how employers evaluate criminal history information once it becomes available.

Article 23-A Individualized Assessment

The New York Correction Law Article 23-A (§§750–755) establishes the statewide standard governing how employers evaluate criminal convictions.

Employers may deny employment based on criminal history only if one of two conditions exists:

1. A direct relationship exists between the criminal offense and the job duties; or

2. Hiring the individual would create an unreasonable risk to property, safety, or public welfare.

When evaluating criminal history, employers must consider several statutory factors, including:

• the nature and seriousness of the offense

• the time elapsed since the offense

• the applicant’s age at the time of the offense

• evidence of rehabilitation

• the legitimate interests of the employer in protecting property and safety

These requirements function as a mandatory individualized assessment process.

Credit Check Restrictions

New York historically allowed employers to use credit reports in employment decisions, but both local and statewide laws now restrict this practice.

New York City Credit Law

New York City’s Stop Credit Discrimination in Employment Act generally prohibits employers from requesting or using consumer credit history in employment decisions. The law includes limited exceptions for certain positions involving financial authority or regulatory requirements.

Statewide Credit Restriction (Effective April 18, 2026)

New York enacted Senate Bill S3072, which significantly expands credit report restrictions statewide.

Beginning April 18, 2026, employers across New York generally may not obtain or rely on consumer credit history for employment purposes unless a statutory exception applies.

Common exceptions include positions involving:

• law enforcement duties

• national security clearance

• financial fiduciary responsibilities

• positions where credit checks are required by federal or state law

Employers using background checks should update their screening packages to ensure credit reports are requested only when an exception applies.

Cannabis Use and Drug Testing Rules

New York law provides significant employment protections related to cannabis use.

Recreational Cannabis

Recreational marijuana is legal for adults in New York under the Marijuana Regulation and Taxation Act (MRTA).

The New York Department of Labor interprets Labor Law §201-d to protect employees from adverse employment action based solely on lawful off-duty cannabis use, unless specific workplace safety or regulatory exceptions apply.

Drug Testing Limitations

Because lawful cannabis use is protected under state law, employers generally may not take adverse action based solely on a positive marijuana test that reflects lawful off-duty use.

New York City Pre-Employment Marijuana Testing Ban

New York City also prohibits most pre-employment marijuana testing under the city’s human rights law.

The restriction applies to many private employers but includes exemptions for safety-sensitive roles and positions regulated by federal or state drug testing requirements.

Employers hiring in New York City must ensure that drug testing programs comply with both city and state requirements.

Pay Equity and Salary History Rules

New York regulates employer inquiries related to compensation during the hiring process.

Salary History Ban

Under New York Labor Law §194-a, employers may not:

• ask applicants about salary history

• rely on salary history when determining compensation

The law applies to both public and private employers.

Pay Transparency

New York’s Pay Transparency Law (Labor Law §194-b) requires employers with four or more employees to disclose compensation ranges in job postings.

Employers must provide:

• the minimum and maximum pay range for the position

• job descriptions when they exist

The requirement applies to positions performed within New York and certain remote roles reporting to New York employers.

Local Fair Chance or Screening Ordinances

Several New York localities impose additional hiring restrictions that affect background check timing and procedures.

New York City

The New York City Fair Chance Act is the most comprehensive local fair chance law in the United States.

Employers generally may not inquire about criminal history or conduct background checks until after a conditional offer of employment. The law also imposes detailed notice requirements before adverse action.

Buffalo

Buffalo’s fair chance ordinance prohibits employers from asking about criminal convictions on job applications and generally delays criminal history inquiries until after the first interview.

Rochester

Rochester’s ban-the-box ordinance restricts criminal conviction inquiries during the application process and permits consideration of criminal history only later in the hiring process.

Suffolk County

Suffolk County requires employers to delay criminal history inquiries until after the application process and initial interview.

Westchester County

Westchester County’s fair chance law prohibits criminal history inquiries on job applications and restricts early-stage criminal background screening during hiring.

These local laws require employers operating across multiple jurisdictions in New York to adjust hiring procedures based on job location.

Record Sealing / Clean Slate Laws

New York enacted the Clean Slate Act, which expands the sealing of criminal records after defined waiting periods.

The law provides for automatic sealing of certain conviction records once individuals complete their sentences and remain conviction-free for specified periods.

Once a record is sealed, it generally may not be disclosed in background checks and employers may not rely on the information during hiring decisions.

This framework further limits the criminal history information available to employers conducting background checks in New York.

Key Statutes

• New York Fair Credit Reporting Act — N.Y. Gen. Bus. Law §380 et seq.
• Prohibited Information in Consumer Reports — N.Y. Gen. Bus. Law §380-j
• Employment of Persons Previously Convicted of Criminal Offenses — N.Y. Correction Law Article 23-A (§§750–755)
• Salary History Ban — N.Y. Labor Law §194-a
• Pay Transparency Law — N.Y. Labor Law §194-b
• Cannabis Protections — N.Y. Labor Law §201-d
• Clean Slate Act — N.Y. Criminal Procedure Law §§160.57 and 160.59
• State Credit Check Restriction — New York Labor Law §201-i (as amended by S3072, effective April 18, 2026)

Employer Compliance Checklist

Employers conducting background checks in New York should implement several compliance safeguards.

Identify job location before ordering background checks. Local fair chance ordinances may delay criminal history inquiries until later stages of the hiring process.

Apply Article 23-A individualized assessment factors. Employers must evaluate criminal convictions using the statutory criteria before denying employment.

Verify consumer reporting limitations. Ensure that background reports comply with New York’s seven-year reporting rules and salary-based exception.

Restrict credit report usage. Beginning April 18, 2026, credit reports may be obtained only when a statutory exception applies.

Review cannabis testing policies. Drug testing programs should account for both statewide protections and New York City’s marijuana testing ban.

Update hiring documentation. Remove salary history questions and ensure job postings include required compensation ranges.

Train recruiters and hiring managers. Personnel involved in hiring should understand both statewide and local requirements governing criminal history inquiries and adverse action procedures.