N.Y.
General Business Law Section 380-B
Permissible dissemination of reports
(a)
A consumer reporting agency may furnish a consumer report under the following circumstances and no other:(1)
In response to the order of a court having jurisdiction to issue such an order, or(2)
In accordance with the written instructions of the consumer to whom it relates, or * (3) To a person whom it has reason to believe intends to use the information (i) in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer, or(ii)
for employment purposes, or(iii)
in connection with the underwriting of insurance involving the consumer, or(iv)
in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status, or(v)
to a person in connection with a business transaction involving the consumer where the user has a legitimate business need for such information, or(vi)
in connection with the rental or lease of a residence. * NB Effective until April 18, 2026 * (3) To a person whom it has reason to believe intends to use the information (i) in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer, or(ii)
for employment purposes, except that a consumer report may be furnished for such purposes only if such report excludes information that bears on a consumer’s credit worthiness, credit standing, credit capacity or credit history and is based on the consumer’s financial transactions, except that such information is permitted to be disseminated to employers or persons set forth in paragraph two of subdivision (d) of this section, or(iii)
in connection with the underwriting of insurance involving the consumer, or(iv)
in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status, or(v)
to a person in connection with a business transaction involving the consumer where the user has a legitimate business need for such information, or(vi)
in connection with the rental or lease of a residence. * NB Effective April 18, 2026 (b) No person shall request a consumer report, other than an investigative consumer report, in connection with an application made after the effective date of this article, for credit, employment, insurance, or rental or lease of residences, unless the applicant is first informed in writing or in the same manner in which the application is made that (i) a consumer report may be requested in connection with such application, and(ii)
the applicant upon request will be informed whether or not a consumer report was requested, and if such report was requested, informed of the name and address of the consumer reporting agency that furnished the report.(c)
Where the notice provided pursuant to subdivision (b) of this section further indicates that subsequent consumer reports, other than investigative consumer reports, may be requested or utilized in connection with an update, renewal, or extension of the credit, employment, insurance, or rental or lease of residences for which application was made, no additional notice to the consumer shall be required at the time such subsequent report is requested. * (d) The notice requirements of this section shall not be applicable to the update, renewal, or extension of credit, employment, insurance, or rental or lease of residences for which initial application was made prior to the effective date of this article. * NB Effective until April 18, 2026 * (d) (1) Except as provided in this subdivision, it shall be an unlawful discriminatory practice for an employer, labor organization, employment agency or any agent thereof to request or to use for employment purposes the consumer credit history of an applicant for employment or employee, or otherwise discriminate against an applicant or employee with regard to hiring, compensation, or the terms, conditions or privileges of employment based on the consumer credit history of the applicant or employee.(2)
Paragraph one of this subdivision shall not apply to:(i)
an employer, or agent thereof, that is required by state or federal law or by a self-regulatory organization as defined in section 3(a)(26) of the securities exchange act of 1934, as amended to use an individual’s consumer credit history for employment purposes;(ii)
persons applying for positions as or employed as peace officers or police officers, as such terms are defined in subdivisions thirty-three and thirty-four of section 1.20 of the criminal procedure law, respectively, or in a position with a law enforcement or investigative function in a law enforcement agency;(iii)
persons in a position that is subject to background investigation by a state agency, provided, however, that the appointing agency may not use consumer credit history information for employment purposes unless the position is an appointed position in which a high degree of public trust, as defined by the commission in rules, has been reposed.(iv)
persons in a position in which an employee is required to be bonded under state or federal law;(v)
persons in a position in which an employee is required to possess security clearance under federal law or the law of any state;(vi)
persons in a non-clerical position having regular access to trade secrets, intelligence information or national security information;(vii)
persons in a position: (A) having signatory authority over third party funds or assets valued at ten thousand dollars or more; or (B) that involves a fiduciary responsibility to the employer with the authority to enter financial agreements valued at ten thousand dollars or more on behalf of the employer; or(viii)
persons in a position with regular duties that allow the employee to modify digital security systems established to prevent the unauthorized use of the employer’s or client’s networks or databases.(3)
As used in this subdivision the following terms shall have the following meanings:(i)
“intelligence information” means records and data compiled for the purpose of criminal investigation or counterterrorism, including records and data relating to the order or security of a correctional facility, reports of informants, investigators or other persons, or from any type of surveillance associated with an identifiable individual, or investigation or analysis of potential terrorist threats;(ii)
“national security information” means any knowledge relating to the national defense or foreign relations of the United States, regardless of its physical form or characteristics, that is owned by, produced by or for, or is under the control of the United States government and is defined as such by the United States government and its agencies and departments; and(iii)
“trade secrets” means information that: (A) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use; (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; and (C) can reasonably be said to be the end product of significant innovation. The term “trade secrets” does not include general proprietary company information such as handbooks and policies. The term “regular access to trade secrets” does not include access to or the use of client, customer or mailing lists.(4)
Nothing in this subdivision shall preclude an employer from requesting or receiving consumer credit history information pursuant to a lawful subpoena, court order or law enforcement investigation.(5)
Paragraph one of this subdivision shall not be construed to affect the obligations of persons required by state or local law relating to disclosures by public employees of conflicts of interest. * NB Effective April 18, 2026 * (e) (1) Except as otherwise provided in this subdivision, it shall be an unlawful discriminatory practice for any state or municipal agency to request or use for licensing or permitting purposes information contained in the consumer credit history of an applicant, licensee or permittee for licensing or permitting purposes.(2)
Paragraph one of this subdivision shall not apply to an agency required by state or federal law to use an individual’s consumer credit history for licensing or permitting purposes.(3)
Paragraph one of this subdivision shall not be construed to affect the ability of an agency to consider an applicant’s, licensee’s, registrant’s or permittee’s failure to pay any tax, fine, penalty or fee for which liability has been admitted by the person liable therefor, or for which judgment has been entered by a court or administrative tribunal of competent jurisdiction, or any tax for which a government agency has issued a warrant, or a lien or levy on property.(4)
Nothing in this subdivision shall preclude a licensing agency from requesting, receiving, or using consumer credit history information obtained pursuant to a lawful subpoena, court order or specific law enforcement investigation. * NB Effective April 18, 2026 * (f) This section does not annul, alter, affect or exempt any employer, labor organization, employment agency or any agent thereof subject to the provisions of this section from complying with any local law, ordinance or regulation with respect to the use of consumer credit history for employment purposes except to the extent that those laws are inconsistent with any provision of this section, and then only to the extent of such inconsistency. For purposes of this subdivision, a local law, ordinance or regulation is not inconsistent with this section if the protection such law or regulation affords an employee or job applicant is greater than the protection provided by this section. * NB Effective April 18, 2026 * (g) The notice requirements of this section shall not be applicable to the update, renewal, or extension of credit, employment, insurance, or rental or lease of residences for which initial application was made prior to the effective date of this article. * NB Effective April 18, 2026
Source:
Section 380-B — Permissible dissemination of reports, https://www.nysenate.gov/legislation/laws/GBS/380-B (updated Dec. 26, 2025; accessed Feb. 14, 2026).
