Accessing Consumer Credit Information — The Colorado Employment Opportunity Act

Division of Labor Standards and Statistics
707 17th Street, Denver, CO 80202 | 303-318-8441
www.ColoradoLaborLaw.gov | www.LeyesLaboralesDeColorado.gov

Interpretive Notice & Formal Opinion ("INFO") #9D:
Accessing Consumer Credit Information — The Colorado Employment Opportunity Act

Overview

The Colorado Employment Opportunity Act ("EOA," C.R.S. § 8-2-126) and the Posting, Screening, and Transparency (POST) Rules (7 CCR 1103-18) restrict the use of consumer credit information in employment decisions by employers in Colorado. Under the EOA, in order for an employer to use an employee's consumer credit information, the information must be required by law or substantially related to the job.

Coverage

• The EOA covers all private and public Colorado employers with 4 or more employees except state and local law enforcement agencies.
• The EOA's protections apply to "employees," which under the Act means any person who may be permitted, required, or directed by any employer, including job applicants.
• Consumer credit information means written, oral, or any other communication of information related to a person's credit score, creditworthiness, credit standing, credit capacity, and/or credit history.

When Employers May Request or Use Consumer Credit Information

• For an employer, or potential employer, to lawfully request consumer credit information, the employer must be a bank or financial institution or the request must be (1) required by law, or (2) for credit information that is substantially related to the position.

Example 1: A standardized job application for a software company includes a statement, "A credit check is required" and requires all applicants to check a box that states, "I acknowledge this requirement." The employer's credit check into all applicants is not required by law, nor is a credit check substantially related to all positions for this company. This broad acknowledgement violates the EOA.

• For consumer credit information to be substantially related to a position, the position must:
• Involve contracts with the federal government related to defense, intelligence, national security, or space agencies;
• Be with a bank or financial institution; or
• Be an executive, management, or officer position (or is a professional staff member to such a position), and the position must include at least one of the following duties:
  1. Sets the direction or control of a division, unit, or an agency of a business;
  2. Has a fiduciary responsibility to the employer;
  3. Is able to access customers', employees', or employer's personal or financial information other than information usually provided in a retail transaction; or
  4. Has authority to issue payments, collect debts, or enter into contracts.

Example 2: As part of a conditional offer for a Director of Accounting position at a benefits administration company, the company requires a credit check. Duties for the position include managing the company's national budget and resolving accounting issues for clients. This credit check is substantially related to the position because the job is a management position that has access to customers' financial data.

How to Request Consumer Credit Information

• To request consumer credit information, the employer or its agent must:
• Determine consumer credit information is substantially related to the position;
• Make the request in writing; and
• Have a bona fide reason or purpose for requesting the information.
• The employer may give the employee or applicant 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.

Using Consumer Credit Information for Adverse Actions

• Employers who rely, in whole or in part, on credit information to take adverse action against an employee must disclose that fact and the information relied on to the employee in writing.
• Adverse action against an employee includes termination, demotion, reassignment to a lower-ranked position or to a position with a lower level of compensation, decrease in compensation, denial of promotion, or any other decision for employment purposes that negatively affects an employee.
• Adverse action against a job applicant includes denial of employment or any other decision for employment purposes that negatively affects an applicant.

Limitation on Liability for Providing Consumer Credit Information

• Nothing in the EOA imposes any liability on a person, including a consumer reporting agency, as defined under C.R.S. § 12-14.3-102(4), for providing an employer with consumer credit information.

Enforcement

• The Division accepts complaints from employees or applicants who have been subjected to alleged violations of the Employment Opportunity Act.
• Anonymous complaints are accepted and serve as tips that the Division may investigate at its discretion.
• The Division investigates complaints, conducts hearings, and may issue a penalty of up to $2,500 to a prevailing employee.

For More Information: Visit the Division's website, call 303-318-8441, or email [email protected].

INFOs are not binding law, but are the Division's officially approved opinions and notices to employers, employees, and others on how the Division applies and interprets statutes and rules. The Division continues to post and update INFOs on various topics; for up-to-date INFOs, rules, and other materials, visit the Division's Laws, Regulations, & Guidance page. Last updated Apr. 8, 2026