OLR Bill Analysis

sHB 6789

AN ACT CONCERNING EMPLOYER INQUIRIES ABOUT AN EMPLOYEE'S OR PROSPECTIVE EMPLOYEE'S CREDIT HISTORY.

SUMMARY:

This bill both limits and broadens the circumstances under which an employer can require an employee or job applicant to consent to a credit report request. Current law generally prohibits employers from requesting an employee's or applicant's credit report, but allows it for positions involving access to $2,500 or more of nonfinancial assets, including museum and library collections and prescription drugs and other pharmaceuticals. The bill broadens this exemption to allow for credit report requests for positions with access to collections or drugs, regardless of their value, while also limiting this category of exemption to only those two types of nonfinancial assets.

EFFECTIVE DATE: October 1, 2015

BACKGROUND

Credit Checks by Employers

The law generally prohibits employers from requiring an employee or job applicant to consent to a credit report request unless the (1) employer is a financial institution, (2) report is required by law, (3) employer reasonably believes the employee or applicant has violated a law related to the job, or (4) report is substantially related to the job or the employer has a bona fide purpose for requesting or using the information that is “substantially related” to the employee's or applicant's current or potential job. The exemption modified by this bill falls under the “substantially related” exemption.

Credit Reports

For the purposes of this law, credit reports are reports containing information about a person's credit score, credit account balances, payment history, savings or checking account balances, or savings or checking account numbers.

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable Substitute