Use of credit information by employers

Posted by: May 01, 2013By Brian Stutheit

Senate Bill 13-018, signed by the Governor on April 19, says:

AN EMPLOYER SHALL NOT USE CONSUMER CREDIT
 INFORMATION FOR EMPLOYMENT PURPOSES UNLESS THE INFORMATION IS
 SUBSTANTIALLY RELATED TO THE EMPLOYEE'S CURRENT OR POTENTIAL JOB.
 AN EMPLOYER OR EMPLOYER'S AGENT, REPRESENTATIVE, OR DESIGNEE
 SHALL NOT REQUIRE AN EMPLOYEE TO CONSENT TO A REQUEST FOR A CREDIT
 REPORT THAT CONTAINS INFORMATION ABOUT THE EMPLOYEE'S CREDIT
 SCORE, CREDIT ACCOUNT BALANCES, PAYMENT HISTORY, SAVINGS OR
 CHECKING ACCOUNT BALANCES, OR SAVINGS OR CHECKING ACCOUNT
 NUMBERS AS A CONDITION OF EMPLOYMENT UNLESS:
 (I) THE EMPLOYER IS A BANK OR FINANCIAL INSTITUTION;
 (II) THE REPORT IS REQUIRED BY LAW; OR
 (III) THE REPORT IS SUBSTANTIALLY RELATED TO THE EMPLOYEE'S
 CURRENT OR POTENTIAL JOB AND THE EMPLOYER HAS A BONA FIDE PURPOSE
 FOR REQUESTING OR USING INFORMATION IN THE CREDIT REPORT THAT IS
 SUBSTANTIALLY RELATED TO THE EMPLOYEE'S CURRENT OR POTENTIAL JOB
 AND IS DISCLOSED IN WRITING TO THE EMPLOYEE.

Thanks to Senator Jessie Ulibarri, who carried this important legislation.