Can a Connecticut Employer run a Credit Report as Part of a Background Check?

Jun 20 2016 Can a Connecticut Employer run a Credit Report as Part of a Background Check?

Connecticut Senate Bill No. 361 (S.B. 361) prohibits certain employers from using credit reports in making hiring and employment decisions regarding existing employees or job applicants. The law took effect October 1, 2011 and applies to all employers in Connecticut with at least one employee.

Exceptions to S.B. 361 are employers that are financial institutions as defined under law, credit reports required to be obtained by employers by law,  and credit reports “substantially related to the employee’s current or potential job.” These “substantially related” reports are allowable if the position:

• Is a managerial position that involves setting the direction or control of a business, division, unit or an agency of a business;
• Involves access to personal or financial information of customers, employees or the employer, other than information customarily provided in a retail transaction;
• Involves a fiduciary responsibility to the employer, as defined under the law;
• Provides an expense account or corporate debit or credit card;
• Provides access to certain confidential or proprietary business information, as defined under the law; or
• Involves access to the employer’s non financial assets valued at $2,005 or more, including, but not limited to, museum and library collections and to prescription drugs and other pharmaceuticals.