Prohibits the use of student loan payment credit history checks to ascertain the payment status of a student loan of an applicant for employment.
This bill would add a new section to the New York Labor Law prohibiting employers, labor organizations, employment agencies, and their agents from requesting or using an applicant’s or employee’s student loan payment credit history for employment purposes. In practice, that means an employer could not use information showing whether a person’s student loans are in deferment, forbearance, delinquency, or default when making hiring, compensation, or other employment decisions. The bill also extends similar protections to state and municipal agencies acting on licensing or permitting applications.
The bill includes a number of exceptions. It would not apply where federal or state law, or certain self-regulatory organizations, require use of this information; nor would it apply to peace officers, police officers, certain law enforcement or investigative positions, positions subject to background investigation in some circumstances, bonded positions, security-clearance positions, roles with regular access to trade secrets or national security information, positions with significant financial authority, or jobs involving modification of digital security systems. It also preserves the ability to obtain the information through lawful subpoenas, court orders, or law enforcement investigations, and it does not override local laws that provide greater protection to workers or applicants.
The bill would create a new anti-discrimination rule in the Labor Law and expand employment-related privacy protections by limiting the use of student loan payment credit history in hiring and workplace decisions. It would also affect state and municipal licensing and permitting agencies by barring them from requesting or using this information, subject to specified exceptions. The measure would therefore alter the legal standards governing background screening, employment screening, and certain licensing determinations in New York, while preserving existing obligations in areas such as public employee conflict-of-interest disclosures and tax-related enforcement.
The committee votes suggest generally favorable support for the bill, with strong majorities advancing it through the Assembly Labor, Codes, and Rules Committees. The pattern of votes indicates that the proposal was viewed positively overall as a worker-protection and fairness measure. At the same time, the presence of several no votes in each committee suggests some members had reservations about the scope of the restrictions or the breadth of the exceptions.
The main points of contention appear to center on whether employers and agencies should be allowed to consider student loan repayment status in limited high-trust or sensitive positions. The bill’s exceptions for law enforcement, security-clearance roles, positions involving trade secrets, fiduciary authority, and digital security reflect concerns about protecting public safety, sensitive information, and financial integrity. Opponents or skeptics likely focused on whether the prohibition could interfere with legitimate screening needs, while supporters likely emphasized reducing employment discrimination against people burdened by student debt and preventing credit-based barriers unrelated to job performance.