New York State Employers: Two Important Laws You Must Know in 2026

As we head into spring 2026, New York State is implementing key legislative changes that will affect employers of all sizes. Two new laws in particular require your attention now: a ban on requesting or using consumer credit history in employment decisions, and a requirement that certain employers register for the Secure Choice Savings Program to mandate retirement savings.

Below is a breakdown of how these changes affect your business, along with practical steps to stay compliant.

1. New Restriction on Using Consumer Credit History in Hiring and Employment

Effective April 18, 2026, New York State will broadly prohibit employers from requesting, using, or making employment decisions based on an applicant’s or employee’s consumer credit history. This includes credit reports, credit scores, and any other information detailing credit accounts, payment history, bankruptcies, judgments, liens, or other credit-related data.

What Employers Can No Longer Do

Under the new law:

• You cannot request an applicant’s or employee’s credit history for hiring, promotions, compensation decisions, or any other terms or conditions of employment.
• Background screening companies are also barred from providing consumer credit information for employment purposes unless a statutory exception applies.

Limited Exceptions

There are narrow exceptions where credit history may be lawfully requested or considered, such as:

• Roles where federal or state law requires credit checks (e.g., certain financial regulators);
• Positions requiring bonding or security clearances;
• Some law enforcement, peace officer, investigative, or high-trust appointed positions;
• Specific roles involving access to trade secrets or national security information.

Why This Matters

These changes are designed to prevent employment discrimination based on financial history and align New York with other states and localities that have enacted similar restrictions. Employers should review and revise background check policies and job application screening processes now to eliminate prohibited inquiries and avoid potential violations.

2. Required Registration with the NY Secure Choice Savings Program

New York’s Secure Choice Savings Program is a state-administered retirement savings initiative designed to expand access to retirement savings for private-sector employees who don’t already have a workplace plan.

Who Must Comply?

Beginning in March 2026, private employers that meet all of the following criteria must register for the program unless they already offer a qualified retirement plan:

• Have 10 or more employees (counting full-time, part-time, and seasonal)
• Have been in business for at least two years
• Do not currently offer a qualified retirement plan like a 401(k), SEP, SIMPLE IRA, or similar plan

Key Registration Deadlines

The program’s deadlines are dependent on the size of the employer:

• Companies with 30+ employees must register by March 18, 2026
• Companies with 15–29 employees must register by May 15, 2026
• Companies with 10–14 employees must register by July 15, 2026

What Employers Must Do

Covered employers need to register with the Secure Choice platform and provide basic company and payroll information; they must automatically enroll eligible employees into the program (with an option for employees to opt out); and they need to facilitate payroll deductions and remit contributions to employees’ Roth IRAs.

NOTE: An employer’s obligation is to facilitate payroll deductions and registration; they are not required to contribute to the accounts or serve as fiduciaries under this program.

Action Steps for New York Employers

To prepare for these changes, employers should:

• Update background check and hiring policies to remove or revise any procedures that involve consumer credit history, and ensure compliance by April 18, 2026.
• Determine whether your business qualifies for the Secure Choice Savings Program and register by the deadline based on your employee count.
• Coordinate with HR and payroll teams to implement automatic enrollment and payroll deduction procedures if you’re subject to Secure Choice.
• Educate staff and legal advisors on the implications of these laws to avoid inadvertent compliance issues.

Final Thoughts

Getting ahead of these significant new laws now will help you avoid compliance risks and strengthen your employer brand in a competitive labor market.

If you’d like help auditing your HR policies or compliance, GTM’s experts can assist. We can conduct an HR Audit, which provides an objective assessment of your HR practices and policies, while planning your human resources support with expert insight on how to align people with company direction. Fill out the brief form below to learn more.