by Mark Wiletsky
Colorado employers need to make sure their background check policies comply with the state’s Employment Opportunity Act, which takes effect July 1. The new law bans employers from obtaining and using credit history information when evaluating applicants and employees. Certain jobs are exempt from the prohibition, but the exemptions are very narrow.
Section 8-2-126 of the Colorado Revised Statutes provides that employers can’t use consumer credit information for employment purposes unless the information is substantially related to an employee’s current or potential job. That means Colorado employers are prohibited from using credit information in employment decisions except when credit or financial responsibility is substantially related to the job.