How It Works: Using Credit Reports In The Hiring Process Over the past several years, states and large metropolitan areas have adopted legislation to regulate an employer’s ability to use a candidate’s credit history as part of the applicant screening process. The Fair Credit Reporting Act (FCRA) is the federal statute which sets forth the rules for requesting, constructing, and utilizing a consumer report; however, the FCRA does not restrict the use of credit for employment purposes. download report
Colorado Joins Eight Other U.S. States Restricting Use of Consumer Credit Information for Employment Purposes Effective July 1, 2013, Colorado will join California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington to become the ninth state to pass legislation restricting the use of credit reports in the applicant screening process. There are approximately 20 other states that have similar pending legislation so we anticipate this trend to continue in the near future. view whitepaper
