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.     

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Photo of Mike Nonaka Mike Nonaka

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works…

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works with a number of banks, lending companies, money transmitters, payments firms, technology companies, and service providers on innovative technologies such as big data, blockchain and related technologies, bitcoin and other virtual currencies, same day payments, and online lending.