Banking Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-6519

Title:

AN ACT PROHIBITING EMPLOYER CREDIT INQUIRIES FOR POSITIONS INVOLVING ACCESS TO CERTAIN NONFINANCIAL ASSETS.

Vote Date:

3/7/2017

Vote Action:

Joint Favorable

PH Date:

2/14/2017

File No.:

120

SPONSORS OF BILL:

Banking committee.

REASONS FOR BILL:

This bill prohibits employers from requiring a credit report as a condition of employment. Currently, employers are permitted to request a credit report as a condition of employment if an employee has access to nonfinancial assets valued at more than $2,500. This bill removes that permission unless the employee is applying for a job at a financial institution.

RESPONSE FROM ADMINISTRATION/AGENCY:

None submitted (in response to HB 6519).

NATURE AND SOURCES OF SUPPORT:

None submitted (in response to HB 6519).

NATURE AND SOURCES OF OPPOSITION:

Eric Gjede, CBIA

The Connecticut Business and Industry Association expressed that it is necessary for small business owners to have the ability to screen applicants in businesses such as car dealerships and jewelry stores. CBIA encouraged the committee to reject the bill on the basis that many businesses have nonfinancial assets that are valuable.

National Federation of Independent Business

This bill would eliminate a “legitimate screening tool” that small businesses use. Non-financial assets can include heavy machinery, tools, and other things that have significant value. Without access to employee credit reports, employers are unable to protect their businesses from potential loss and ensure that they can trust their employees. The NFIB also noted that small businesses are more vulnerable to loss because the “lack the checks and balances of larger corporations”.

Reported by: Sara LeMaster

Date: 03/26/2017