OLR Bill Analysis

SB 40

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

SUMMARY:

This bill limits the circumstances in which most employers can check the credit of job applicants and employees. But it also broadens the circumstances in which employers can require checks of people applying for or working in positions that would give them access to museum and library collections or prescription drugs and other pharmaceuticals.

Current law generally prohibits employers from requiring an employee or job applicant to consent to a credit report request, but allows for various exceptions. One exception allows credit checks of people seeking positions with access to the employer's nonfinancial assets valued at $2,005 or more. The bill limits this exception to positions with access to museum and library collections or prescription drugs and other pharmaceuticals of any value.

The law, unchanged by the bill, also allows employers to require credit checks if (1) the employer is a financial institution, (2) it is required by law, (3) the employer reasonably believes an employee has violated a law related to his or her employment, or (4) the position meets certain other requirements (e.g., is managerial or involves access to proprietary information).

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable

Yea

9

Nay

4

(02/23/2016)