Employment Based on Credit Information; Prohibitions
VT Employment Credit Check Law
Employees · Credit reporting · Financial
Bars most Vermont employers from asking about or basing employment decisions on an applicant's or employee's credit report or credit history. Exempt employers may not use credit as the sole factor, and must get written consent, explain adverse actions and keep reports confidential.
- Where
- Vermont
- Citation
- 21 V.S.A. § 495i
- Status
- In force
- Last amended
- 2022-07-01
- Enforced by
- Vermont Attorney General or State's Attorneys (21 V.S.A. § 495b)
- People can sue
- Yes
- Penalties
- Enforced under the fair employment practices remedies in 21 V.S.A. § 495b: AG or State's Attorney actions with Consumer Protection Act civil penalties (9 V.S.A. §§ 2458-2461), and private suits for compensatory and punitive damages, back pay, reinstatement and attorney's fees.
- Applies to
- Vermont employers, for applicants and employees
- Exempt positions include those requiring credit data by law, with access to confidential financial or payroll information, financial fiduciary roles, law enforcement, EMS and firefighters, and financial institutions and credit unions
What a privacy notice must say
- Get written consent each time a credit report is obtained, and disclose in writing the reasons for access and for any adverse action; the individual may contest accuracy.21 V.S.A. § 495i(d)(1)-(2) · Only if: Employer relies on an exemption
Practices it requires
- Do not ask about, or make hiring, firing, pay or other employment decisions based on, an applicant's or employee's credit report or credit history, unless an exemption applies.21 V.S.A. § 495i(b)-(c)
- Exempt employers may not use credit information as the sole factor in employment decisions.21 V.S.A. § 495i(c)(2) · Only if: Employer relies on an exemption
Security duties
- Keep credit information confidential and, if the person is not hired or leaves, give them the report or securely destroy it; do not pass costs on to the individual.21 V.S.A. § 495i(d)(3)-(4)
Sources
Checked against these sources on 2026-09-25 by research agent (Claude), primary sources.
Unverified: The effective date of 2011 Acts No. 154 (Adj. Sess.) (the original enactment) was not confirmed. Application of § 495b remedies is inferred from § 495i's placement in 21 V.S.A. ch. 5, subch. 6; § 495i does not cross-reference them expressly.
Research reference, not legal advice.