Tuesday, August 16, 2011

Connecticut Passes Law Restricting Use of Credit Reports in Employment Application Process

Connecticut, is now the fifth state (following Hawaii, Illinois, Oregon and Washington), in placing restrictions on employers' ability to require credit checks of prospective employees in connection with the job application process. Late last year, the EEOC filed a charge against Kaplan Education (a division of the  Washington Post) on this very issue, alleging disparate impact against minority applicants. Apparently several other states, including California, are considering similar legislation. All is apparently not lost for employers in that most of the legislation contemplates key exceptions to the prohibition, which includes business necessity/job requirement. Initially these and other exceptions, will be interpreted broadly by Courts, but I suspect over time will create a new distinct area of employment and privacy law.



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