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New Connecticut Law Limits Employer Access to Employee Credit Data

by Heather Egan Sussman, Stephen D. Erf and Sabrina E. Dunlap Adding to the growing number of states limiting employers’ use of credit reports, including Hawaii, Washington, Oregon, Illinois, and Maryland), Connecticut recently passed Public Act No. 11-223 restricting employer use of credit reports and credit history for employees or job applicants.  The Connecticut law goes into effect October 1, 2011, and prohibits employers from requiring an employee or job applicant to consent to a request for a credit report “as a condition of employment.”  This includes reports that contain information about credit score, credit account balances, payment history, savings or checking account balances or savings or checking account numbers. The law has four exceptions.  Paraphrasing from the law, employers may request credit data if: The employer is a financial institution; A report is required by law; The employer reasonably...

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