New York Background Screening Requirements for Employers

New York is one of the most regulated jurisdictions in the United States when it comes to employment background screening. Employers operating in New York must comply with the federal Fair Credit Reporting Act (FCRA), the New York State Fair Credit Reporting Act, and additional city-level regulations in New York City.

This page outlines the key legal requirements that apply to New York employers and explains how Personnelgraph enables full compliance through automated disclosures, AI-driven court searches, and compliant authorization workflows.

Key Background Screening Laws in New York

1. New York State Fair Credit Reporting Act (NY FCRA)

The New York FCRA adds additional protections on top of the federal law.

Employer obligations include:

Providing a written disclosure stating that a consumer report may be obtained for employment purposes.
Obtaining written authorization from the applicant before ordering the report.
Notifying the applicant if a credit report is used to make an adverse decision (in addition to criminal history).
Personnelgraph’s authorization system automatically includes New York–specific language and ensures lawful consent is obtained.

2. New York Correction Law Article 23-A

New York strongly limits the ability of employers to deny employment purely on the basis of a criminal conviction.

Under Article 23-A, an employer may only consider a past conviction if:
There is a direct relationship between the conviction and the job duties, or
Hiring the individual would pose an unreasonable risk to property or public safety.
Employers must conduct an individualized assessment considering factors such as:
The time elapsed since the offense
The severity of the offense
Evidence of rehabilitation
The applicant’s age at the time of conviction
The nature of the job

Personnelgraph provides guidance tools to support employers through this assessment process.

3. New York City Fair Chance Act (If hiring within NYC)

For employers hiring in New York City, the Fair Chance Act adds stricter rules:
Employers may not ask about criminal history or order a background check until after a conditional offer of employment.

If taking adverse action, employers must provide:
A copy of the report
A written “Fair Chance Notice”
A minimum of five business days for the applicant to respond with evidence of rehabilitation or error

Personnelgraph supports this process with automated Fair Chance Act notices and timeline tracking.

4. Adverse Action Requirements in New York

Both state and federal laws apply. Before denying employment based on a background check, employers must:

Provide a Pre-Adverse Action Notice with:
A copy of the background report
A copy of Article 23-A (required by law)
A summary of rights under the FCRA and NY FCRA
Allow the applicant reasonable time to respond
Issue a Final Adverse Action Notice only after the response window has passed

Personnelgraph’s compliance engine automatically includes the required Article 23-A documentation in all New York adverse action notices.

Applicant Rights in New York

Applicants have the right to:

Receive a copy of their consumer report upon request
Be informed if a background check was used to deny employment
Dispute inaccurate or outdated information
Receive a written explanation of how their criminal history was evaluated under Article 23-A

Personnelgraph enables these rights through its digital reporting and dispute resolution system.

How Personnelgraph Helps New York Employers Maintain Compliance

Personnelgraph includes the following features specifically for New York compliance:

State- and NYC-specific disclosure and authorization forms
Built-in Ban-the-Box and Fair Chance Act workflows
Automatic inclusion of Article 23-A in adverse action notices
AI-driven court selection to ensure comprehensive and accurate reports
Automated document retention to satisfy legal audit requirements

New York imposes some of the most employee-protective regulations in the nation when it comes to criminal background checks. Employers must follow specific procedures before requesting reports, evaluating convictions, and taking adverse action. Failure to comply can result in significant legal penalties.

Personnelgraph is designed to make compliance seamless, providing New York employers with a fully automated, legally aligned background screening process from authorization to final decision.