Senate Committee Passes Bill to Stop Pre-employment Credit Checks

The Senate Judiciary Committee has approved Senate Bill 3, the Employment Opportunity Act. The Act prohibits pre-employment credit checks that some companies use to screen candidates. Employers can only use credit report information if it is directly related to the position for which a candidate is applying, such as a money or asset management role. Employers found in violation of this law would be subject to civil penalty. The bill will now be considered by the full Senate.

“Credit scores were never intended to be used in hiring practices,” said bill sponsor, Sen. Morgan Carroll D-Aurora. “Tying credit scores with employment opportunity creates a vicious circle that unfairly punishes struggling Coloradans. We should be doing everything in our power to get citizens back to work, and this legislation ensures that we are removing unnecessary punitive barriers and helping citizens get back on their feet.”

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