Restricting Employee Credit Checks Passes 1st Vote

By: AP
By: AP

DENVER (AP) -- Colorado Senators gave initial approval to a measure restricting employers from using consumer credit information against job applicants unless the job they're applying for is in the financial or security sectors.

Democratic Sen. Morgan Carroll says people who have lost jobs in the recession have taken a hit on their credit report and now have a tough time finding employment because consumer credit information is used against them.

More than a dozen states this year are considering legislation similar to Colorado's.

Opponents of the bill say businesses should be allowed to use all information available to them when making hiring decisions and that the legislation opens them up to lawsuits by disgruntled applicants.

The bill got preliminary approval in the Senate Monday but faces a tough road in the GOP-controlled House.


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  • by Lady Elise Location: COS/CO on Feb 22, 2012 at 07:47 AM
    I'm glad that this legislation was passed. I know that there are alot of good potential candidates, who apply for employment opportunites and that are honest on the job application. Yet, the job seeker may have some negative information on his/her Credit Report, that the individual is in the process of solving. I do not ever think that finanacial information contained in your Credit Report, should be a factor to analyuze, whether or not to consider one for memployment, if he/she is not being hired for a position in the financial/credit card/identity theft industry.
  • by Sunshine on Feb 20, 2012 at 04:41 PM
    Thank Colorado for passing this bill. You can be proud and the first state to do so, I honor those that voted for it, to help the people of Colorado. thank you again and Im happy to live here.
  • by Dale Location: Peyton on Feb 20, 2012 at 02:39 PM
    Uh, what about those who have "joint" accounts; my ex ruined my credit? If companies focus on credit reports, anyone who is or is planning a family better NOT.
  • by Operative X Location: Colorado Springs on Feb 20, 2012 at 01:35 PM
    This legislation makes sense. Companies can still pursue other combinations of available background checks for non-financial personnel including drug screens, employment/education verifications, professional reference calls, and county criminal checks/SSN traces as named conditions of employment. These are fairly common checks, all of which require a candidate's signed consent, and are quite revealing on their own without having to delve into an individual's credit. Also, credit checks aren't typically included as part of the standard pre-employment check for many companies which outsource the process to a background vendor, so they end up costing an employer more when they may not be necessary.
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