Colorado is the Latest and Ninth State to Enact Legislation Restricting the Use of Credit Reports for Employment Purposes

On April 19, 2013, Colorado Governor John W. Hickenlooper signed into law Senate Bill 13-018 (the “Employment Opportunity Act”), which will significantly restrict the ability of Colorado employers to use “consumer credit information” for hiring and other employment purposes unless use of the information is limited to the narrow category of positions set forth in the statute. With this law, Colorado becomes the ninth state to regulate the use of credit-related information for employment purposes, following laws enacted in California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington.1 Colorado’s law goes into effect July 1, 2013.