On July 13, 2011, Connecticut adopted a law prohibiting certain employers from using employees’ or prospective employees’ credit report information in making employment or hiring decisions.  Hawaii, Illinois, Oregon, Washington, and Maryland also have statutes that prohibit employers’ use of credit report information for employment purposes.  Other states currently considering similar legislation include California, New York, Pennsylvania, Ohio, and Florida.

Connecticut’s statute prohibits employers from requiring an employee or prospective employee to consent to a request for a credit report as a condition of employment.  The prohibition does not apply to, among other exceptions, employers that are financial institutions, credit reports required to be obtained by employers by law, and credit reports substantially related to the employee’s current or potential job. 

We will continue to monitor state legislative developments in this area.