PDQ Legal

Connecticut to Restrict the Use of Credit History in Employment Decisions

Connecticut has joined five other states (Hawaii, Illinois, Maryland, Oregon, and Washington) that prohibit the use of credit history in employment decisions.

Governor Dannel Malloy of Connecticut has signed into law S.B. 361 (effective October 1, 2011), which will prohibit certain employers from using credit reports in making hiring and employment decisions. The law applies to all employers in Connecticut with at least one employee.

S.B. 361 bans almost all employers from requiring job applicants or current employees to consent to a request for a credit report as a condition of employment. Exceptions to the statute 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.”

EEOC Hearing Scheduled on Use of Criminal Records

The Equal Employment Opportunity Commission (EEOC) will hold a meeting on the use of criminal records for employment screening purposes on Tuesday, July 26, in Washington, D.C. The National Association of Professional Background Screeners (NAPBS), which we are members of, is preparing comments for submittal to the EEOC on the relevance and benefits of access to criminal history records by employers. NAPBS is also partnering with other associations and coalitions as we move toward the July meeting date. This will be a full Commission meeting, meaning all five Commissioners and EEOC’s General Counsels will attend. This includes Chairwoman Jacqueline Berrien, Commissioner Chai Feldblum, Commissioner Stuart Ishimaru, Commissioner Vicky Lipnic and Commissioner Constance Barker. A formal agenda has not yet been released but it is excepted there will be multiple panels including academics, lawyers, victim’s groups (i.e., those who have been denied employment due to their criminal history), government officials, litigants from the El v. Septa case and others.

Given the importance of this meeting to our industry and you as our client, we want to ensure that you are aware of this upcoming meeting and have the opportunity to join in our efforts to ensure that the interests of the providers and users of criminal records are represented. The role of the use of criminal records in employment screening will be the focus of this meeting and as employers have an important stake in what is being considered during the meeting, we encourage you to add this date to your calendar and make plans to attend the hearing on July 26 if possible. The meeting will be open to the public and it will not be webcast or televised, although a transcript will be available after the meeting.