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Connecticut Law Bans Credit Reports

Connecticut Governor Dannel Malloy has signed a new law (formerly S.B. 361) making it illegal for employers to use credit reports to make employment decisions. Employers would not be allowed to require employees or applicants to consent to a credit check.

Exceptions are made for financial institutions or any other industry where credit checks are required by law. Employers may also run checks if they believe employees are engaged in illegal activity or if the employer can provide evidence that the credit report is “substantially job-related.