To: Edith Prague . -
From: Carolyn Myers-Simmonds, Chief Regulatory Counsel, First Advantage Corporation, 100 Carillon
Parkway, St. Petersburg FL 33716 

Topic: Opposition to H552i

February 18, 2009

Senator'Edith G. Prague, Co-Chair
Representative Kevin Ryan, Co-Chair
Labor and Public Employees Committee
Room 3800, Legislative Of?ce Building
Hartford, CT 06106

Re: or H. 5521

Dear Joint Committee Co-Chairs,

I am writing in opposition to your House Bill 5521 which, if enacted, would effectively
prohibit employers from utilizing credit history in hiring prospective employees.

We are a member of the National Association ?of Professional Background Screeners
(NAPBS) which represents over 600 members. and their respective companies. Our
company is a national provider of background check and credential veri?cation
information for employers. Our clients are representative of the more than 88% of
companies in the US who perform background checks on their employees across the

country. Our information-products protect employers from liability and ensure that.

newly hired employees pose no ?nancial risk. 

Credit reports are integral to the hiring process because employers must determine the
accuracy and completeness of a job application. Credit reports are used for
employment checks to show former addresses, former employment, and the ?nancial
- situation of a prospective employee. By using credit reports in the hiring process,
employers avoid wasting resources on recruiting, hiring, and training new employees,
only to ?nd out later that 'the hiring decision was based on incomplete or falsified
information. Also, employers use credit reports to safeguard against internal theft that
can be a result of employees who can not meet their ?nancial obligations.

The use ?of credit reports for employment decisions is governed and expressly allowed
by thefederal Fair Credit Reporting Act (FCRA). Under the FCRA, an employer must
give the consumer notice that a credit report may be used in the hiring process and
require the consumer's written consent to access their credit report. The FCRA

provides important consumer protections by requiring a notice by the employer if an"

adverse action is taken; is. the applicant is not hired. The notice includes the name,
address, and phone number of the consumer reporting agency or? credit reporting
agency that supplied the report.

Furthermore, without this important screening tool, many Connecticut employers may
elect to outsource certain employee work force in another state, or simply not hire at all.

. It is our hope that Connecticut employers willbe allowed the continued use of credit 

 

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reports for hiring decisions. If you have any questiOns concerning how credit reports
are used by employers to make decisions, please-feel free to contact me. Thank you

for your time and consideration of our views.

Sincerely,