OLR Bill Analysis

SB 40 (File 4, as amended by Senate "A")*

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

SUMMARY:

This bill increases, from $2,005 to $10,000, the nonfinancial assets value threshold that determines whether an employer may require a job applicant or employee to consent to a credit report request. Current law generally prohibits employers from seeking such consent unless it is for people seeking positions with access to the employer's nonfinancial assets, including museum and library collections and pharmaceuticals, valued at $2,005 or more. The bill increases this threshold to $10,000.

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).

*Senate Amendment “A” increases the nonfinancial assets value threshold, instead of limiting its applicability to positions with access to museum and library collections and pharmaceuticals.

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable

Yea

9

Nay

4

(02/23/2016)

General Law Committee

Joint Favorable

Yea

14

Nay

2

(04/05/2016)