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Colorado Amends Law Limiting Credit Reports

By Michael Klazema on 4/10/2014

The Act restricts an employer’s use of consumer credit information for employment purposes unless the information contained in the report is “substantially related to the employee’s current or potential job.” “Substantially related to the employee’s current or potential job” means information that is related to the position because it is either an executive or management position, or it is professional staff to executive or management personnel and involves certain characteristics. Senate Bill 14-102 expands that definition to include banks and financial institutions.

Therefore, under Colorado’s Employment Opportunity Act, employers are permitted to use consumer credit information for employment purposes if the positions applied for are:

  1. An executive or management position;
  2. Professional staff to executive or management personnel and involves one or more of the following:
  3. setting the direction or control of a business, division, unit, or an agency of a business;
  4. a fiduciary responsibility to the employer;
  5. access to customers', employees', or the employer's personal or financial information other than information customarily provided in a retail transaction;
  6. The authority to issue payments, collect debts, or enter into contracts; or
  7. With a bank or financial institution.

This amendment became effective upon passage on March 27, 2014.

Senate Bill 14-102 is available here: http://www.leg.state.co.us/Clics/CLICS2014A/csl.nsf/fsbillcont3/
0254E4E9E607A65787257C5B0072F96C?Open&file=102_enr.pdf

backgroundchecks.com Legislation and Compliance Update of April 29, 2013 is available here: http://www.backgroundbiz.com/compliance/complianceupdate_04292013.html.

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