What's New!

New Oregon Law Prohibits Most Employment Credit Checks

The Oregon legislature recently passed a new law that will greatly restrict an employer's ability to perform credit checks on applicants and employees. The new law is effective upon enactment.

The Job Applicant Fairness Act makes it illegal for most employers to obtain or use information in a credit report to make a hiring decision about an applicant or as part of any decision involving a current employee.

There is an exception for an employer to obtain or use a credit report if the information is "substantially job-related" (e.g., applicants or employees in cash-handling positions or those who have access to and responsibility for the company's or customers' financial data). The employer's reason for the use of the information must be disclosed to the applicant or employee in writing.

If you currently perform credit checks for Oregon employees as part of your hiring or retention practices, you should plan to discontinue the practice. If you plan to use the "substantially job-related" exception, carefully examine the reason for conducting the check and make sure you disclose the reason for the check to the applicant or employee in writing.

The new law will not affect an employer's ability to conduct criminal and other types of background checks. UEA, in partnership with Asset Control, can help your organization develop a compliant program for checking background information. Asset Control offers UEA members discounted rates! Contact us for more information about this valuable program.