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CT Legislation Changes

Signed by Governor Malloy, SB 361 will prohibit employers from using credit reports for pre-employment and promotion purposes, unless the employer can specifically articulate how it directly relates to the position. This new law will go into effect in Connecticut on 10/01/2011 and applies to all CT employers with at least one employee. CT joins 5 other states (HI, IL, MD, OR & WA) that currently utilize the same type of legislation.

S.B. 361 outlaws most CT employers from requiring applicants or employees to consent to a credit report as a condition of employment. There are exceptions to the statute, such as employers that are financial institutions as defined under law; employers that are required by law to obtain credit reports, and credit reports that are “substantially related to the employee’s current or potential job.”

Such as:

· Managerial position that involves direction or control of business

· Positions that have access to financial information

· Positions that involve financial responsibilities to the employer

· Provides credit or debit cards for the company

· Has or provides certain confidential business information

· Has or is involved in the employer’s non-financial assets of $2,005 or more

Employer’s Investigative Services strongly suggests that employers that are in any way tied with hiring decisions in CT contact their legal counsel and discuss their policies in detail.

***The above statement is an opinion of Employer’s Investigative Services and shall not be considered a direct translation of the law. We are not attorneys and any questions should be forwarded to your legal counsel. Thank you.***


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