Oregon Law Barring Credit Checks For Employment Purposes Effective July 1, 2010
June 24, 2010On July 1, 2010, the Oregon Bureau of Labor and Industries will implement legislation (S.B. 1045a) which will prohibit the use of credit history for employment purposes including hiring, discharge, promotion and compensation.
The bill, which was passed by the legislature earlier this year, provides exceptions for financial institutions, public safety offices and other employers if credit history is “substantially job-related”. The Bureau of Labor and Industries has adopted final rules implementing the law, including the definition of “substantially job-related.” According to the final rules, an employee’s credit history is substantially job-related if an essential function of the job “requires access to financial information not customarily provided in a retail transaction”, or if the credit history is necessary in order for the employer to obtain insurance or bonding. Many employers believe that the language in the rules provides enough leeway for most employers to continue the practice of using credit histories for positions with access to sensitive financial information, according to a statement issued on June 9, 2010 from the Association of Oregon Industries, a major employer group.
