Vermont

Background Check laws in VT:

21 V.S.A 495i Employment Based on Credit Information

(b) An employer shall not:

(1) Fail or refuse to hire or recruit; discharge; or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment because of the individual’s credit report or credit history.

(2) Inquire about an applicant or employee’s credit report or credit

history.

(c)(1) An employer is exempt from the provisions of subsection (b) of this section if one or more of the following conditions are met:

(A) The information is required by state or federal law or regulation.

(B) The position of employment involves access to confidential financial information.

(C) The employer is a financial institution

(D) The position of employment is that of a law enforcement officer,  emergency medical personnel, or a firefighter.

(E) The position of employment requires a financial fiduciary responsibility to the employer or a client of the employer, including the authority to issue payments, collect debts, transfer money, or enter into contracts.

(F) The employer can demonstrate that the information is a valid and reliable predictor of employee performance in the specific position of employment.

(G) The position of employment involves access to an employer’s payroll information.

(2) An employer that is exempt from the provisions of subsection (b) of this section may not use an employee’s or applicant’s credit report or history as the sole factor in decisions regarding employment, compensation, or a term, condition, or privilege of employment

Vermont Credit Report Disclosure Law:

(d) If an employer seeks to obtain or act upon an employee’s or applicant’s credit report or credit history pursuant to subsection (c) of this section, the employer shall:  (1) Obtain the employee’s or applicant’s written consent each time the employer seeks to obtain the employee’s or applicant’s credit report. (2) Disclose in writing to the employee or applicant the employer’s reasons for accessing the credit report, and if an adverse employment action is taken based upon the credit report, disclose the reasons for the action in writing. The employee or applicant has the right to contest the accuracy of the credit report or credit history. (3) Ensure that none of the costs associated with obtaining an employee’s or an applicant’s credit report or credit history are passed on to the employee or applicant.

In other words:

A vermont employer cannot request a credit report on a job applicant or current employee unless required by law, the candidate is a first resopnder, the position requires financial fiduciary duty to the employer or a client of the employer, the information is a valid predicator of employee performance, or the psoition involves access to payroll information.

Even if an employer can lawfully request credit information belonging to an applicant or employee, the employer cannot use that information as the sole factor in making an employment decision.

In other words:

An employer must obtain a new consent for each occasion that an applicant's or employee's credit information is requested. The reason for requesting the credit report must be disclosed in writing. The employer cannot require the applicant or employee to pay the cost associated with procuring the credit report.