Colorado

BACKGROUND CHECK LAWS IN CO:

CRS 12-14-.3-105.3 (1) (e) – Reporting of information prohibited

CR-605(a) No consumer reporting agency shall make any consumer report containing any of the following items of information: (e) Records of arrest, indictment or conviction of a crime that, from the date of disposition, release, or parole, predate the report by more than seven years. 2) The provisions of subsection (1) of this section do not apply to the case of any consumer report to be used in connection with: (c) The employment of an individual at an annual salary that equals or is reasonably expected to equal seventy-five thousand dollars or more.

In other words:

Under Colorado law, CRAs cannot report on criminal information that is older than 7 years, unless the salary of the job in question equals or is expected to equal $75,000 or more.

(3) (a) An employer shall not use consumer credit information for employment purposes unless the information is substantially related to the employee's current or potential job. An employer or employer's agent, representative, or designee shall not require an employee to consent to a request for a credit report that contains information about the employee's credit score, credit account balances, payment history, savings or checking account balances, or savings or checking account numbers as a condition of employment unless:

• (I) The employer is a bank or financial institution;
• (II) The report is required by law; or
• (III) The report is substantially related to the employee's current or potential job and the employer has a bona fide purpose for requesting or using information in the credit report that is substantially related to the employee's current or potential job and is disclosed in writing to the employee.

(b) When consumer credit information is substantially related to the employee's current or potential job, an employer may inquire further of the employee to give him or her the opportunity to explain any unusual or mitigating circumstances where the consumer credit information may not reflect money management skills but is rather attributable to some other factor, including a layoff, error in the credit information, act of identity theft, medical expense, military separation, death, divorce, or separation in the employee's family, student debt, or a lack of credit history.

Employers in Colorado can only consider an applicant’s credit information when making employment decisions if: (1) the employer is a bank or financial institution; (2) the report is required by law; or (3) the report is significantly linked to the job in question, and the employer has good reason – which she or he has explained in writing – to ask for or use the applicant’s credit information. If an employer finds irregularities in the applicant’s credit information, the employer can give the candidate the chance to explain the causes of the irregularities.