Connecticut Law on Employer Use of Credit Reports

Unless an exception applies, Connecticut doesn't allow employers to use credit information in making job decisions.

Connecticut law prohibits most employers from using credit reports in making employment decisions. Like employers in other states, Connecticut employers must follow the notice and authorization requirements of the federal Fair Credit Practices Act (FCRA), to make sure applicants and employees know when their credit reports are used and have an opportunity to correct errors in those reports. (For more information on what the FCRA requires, see our article Can Prospective Employers Check Your Credit Report?)

In Connecticut, however, employers may not check an applicant’s or employee’s credit report or consider credit history in making job decisions, except in limited situations.

Ban on Using Credit Reports in Employment

Unless an exception applies, Connecticut employers may not require an applicant or employee to consent, as a condition of employment, to a request for a credit report that contains information about his or her credit score, credit account balances, bank account numbers, bank account balances, or payment history.

Exceptions for Certain Employers and Employees

Despite the prohibition described above, some employers may use credit reports, at least for some positions. Connecticut law provides exceptions for:

  • employers that are financial institutions
  • positions for which credit reports are required by law
  • employees whom the employer has reason to believe have engaged in specific activity that violates the laws relating to their employment
  • reports that are substantially related to the person’s job, or
  • employers that have a bona fide purpose for requesting the information, which is substantially job related and is disclosed, in writing, to the employee or applicant.

A credit report is substantially related to the person’s job if:

  • the position under consideration is managerial, involving setting the direction and control of a business or unit within a business
  • the position involves access to personal or financial information (other than the type of information used in a typical retail transaction) of customers, employees, or the employer
  • the position will have an expense account or corporate credit or debit card
  • the position involves a fiduciary duty to the employer, such as authority to issue payments, collect debts, enter contracts, or transfer money on the employer’s behalf
  • the position provides access to trade secrets or other confidential or proprietary information, or
  • the position provides access to at least $2,500 worth of nonfinancial assets, such as museum collections, library collections, and prescription drugs and other pharmaceuticals.

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