This summary of Vermont’s background check regulations and ban-the-box policies is regularly updated. However, given the frequent changes in legal statutes, we cannot guarantee the accuracy of all details. It is recommended that you consult legal counsel for up-to-date and precise guidance.

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA), a federal law, sets a standard for hiring practices. It ensures that both employers and job applicants are protected by regulating the collection and use of background information during the hiring process.

State Laws

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

• In Vermont, employers are generally prohibited from requesting a credit report from a job applicant or employee, unless required by law or if the position involves certain responsibilities. Exceptions include:
  • First responder roles.
  • Jobs that require fiduciary responsibility to the employer or a client.
  • Roles where credit data is a reliable predictor of job performance.
  • Positions with access to payroll data.

Even if an employer is legally permitted to request credit information, they cannot base hiring decisions solely on the credit report.

21 V.S.A. 495i(d)(1) and (3) – Consent for Credit Reports

• Employers must obtain fresh consent each time they request a credit report for an applicant or employee. The purpose of the request must be clearly communicated in writing.
• Employers cannot require the applicant or employee to cover the cost of obtaining the credit report.

V.S.A. 2056c(c)(10) – Criminal Record Request Fees

• If an employer requests criminal records from the Vermont Crime Information Center, they are prohibited from charging the applicant or employee for the costs of obtaining those records.

Ban-the-Box & Fair Hiring Laws

Statewide Ban-the-Box Law (Public and Private Employers)

• Who Must Comply: All employers operating in Vermont are subject to this law.
• When Employers Can Inquire About Criminal History: In Vermont, employers can only inquire about an applicant’s criminal history during an interview or after determining that the candidate is “otherwise qualified” for the position. This ensures that a candidate’s criminal background is not an initial barrier to employment consideration.

Employers should be aware of these regulations to ensure compliance with Vermont’s hiring laws and to make fair, informed decisions throughout the recruitment process.