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Summary of differences between federal and state regulations
Arrest & conviction record inquiries
Applies to private and public employers. Act No. 81.
Effective July 1, 2017, employers may not inquire about applicants’ criminal histories on an initial employment application, unless required to do so by law. Inquiries may be made during or following the initial interview. Employers who do perform inquiries must allow applicants who remain otherwise qualified to explain the circumstances of any convictions, including rehabilitation.
Employer immunity from disclosure claims
Both the federal and state requirements do not cover employer immunity from disclosure claims.
Credit history
Effective July 1, 2012, Vermont employers may not:
- Discharge, fail or refuse to hire or recruit, 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.
- Inquire about an applicant or employee’s credit report or credit history.
However, employers are exempt from this if:
- The information is required by state or federal law or regulation;
- The position of employment involves access to confidential financial information;
- The employer can demonstrate that the information is a valid and reliable predictor of employee performance in the specific position of employment;
- The employer is a financial institution or a credit union;
- The position of employment is that of a law enforcement officer, emergency medical personnel, or a firefighter;
- 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; and/or
- The position of employment involves access to an employer’s payroll information.
Even if an employer is exempt, it still has restrictions under the law. Such an employer 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. Additionally, if an exempt employer seeks to obtain or act upon an employee’s or applicant’s credit report or credit history, the employer must:
- Obtain the employee’s or applicant’s written consent each time the employer seeks to obtain the employee’s or applicant’s credit report.
- 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.
- 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.
- Ensure that the information in the employee’s or applicant’s credit report or credit history is kept confidential and, if the employment is terminated or the applicant is not hired by the employer, provide the employee or applicant with the credit report or have the credit report destroyed in a secure manner which ensures the confidentiality of the information in the report.
State
Contacts
Employer immunity from disclosure claims
Vermont Department of Labor and Industry
Arrest record inquiries
Vermont Attorney General’s Office, Civil Rights Unit
Conviction record inquiries
Vermont Attorney General’s Office, Civil Rights Unit
Regulations
Employer immunity from disclosure claims
None.
Arrest record inquiries
None.
Conviction record inquiries
20 V.S.A. 2056c, Dissemination of criminal history records to employers
Credit history
Vermont Act 154 (21 V.S.A. 495i), Employment decisions based on credit information
Federal
Contacts
Employer immunity from disclosure claims
None.
Arrest record inquiries
Equal Employment Opportunity Commission (EEOC)
Conviction record inquiries
Equal Employment Opportunity Commission (EEOC)
Regulations
Employer immunity from disclosure claims
None.
Arrest record inquiries
None; however, EEOC published the enforcement guidance, Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights Act of 1964, on April 25, 2012.
Conviction record inquiries
None; however, EEOC published the enforcement guidance, Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights Act of 1964, on April 25, 2012.