On April 19, 2013, Governor Hickenlooper signed the Employment Opportunity Act into law. The new law goes into effect on July 1, 2013 and will restrict Colorado employers in their ability to obtain and use credit information for employment purposes. Key points of the new law include :
- Generally prohibits employers from using consumer credit information when evaluating a person for employment and for purposes of promotion, demotion, reassignment, adjustment in compensation level, or retention as an employee.
- Provides narrow exemptions for certain types of employees and in situations where the information is “substantially related” to the employee’s current or potential job.
- Requires employers who have obtained and used consumer credit information to take adverse action against an employee to disclose to the employee that consumer credit information has been obtained and used and the particular information upon which the employer relied.
- Authorizes the Colorado Division of Labor to investigate possible violations and impose penalties of up to $2,500 against employers violating the law.
If you would like more information regarding your company’s employment issues, please contact our Business Law Group partner, David A. Closson at [email protected].