It’s official!

As several states have before, on March 29, 2010, Oregon Governor Kulongoski signed legislation (SB1045) that specifically prohibits employers from using credit history inmaking hiring, discharge, promotion, and compensation decisions unless the applicant or employee is given advanced written notice and the credit history is substantially related to the position sought. The legislation provides additional exceptions for financial institutions and public safety offices.

Employers, make sure you can explain that there is the credit report is substantially related to the job, before requesting the report.

Remember the last blog about Credit Checks and the government looking towards restricting them for pre-employment screening? Well,  Oregon and 15 other states have proposed bills to ban credit checks on most job applicants, unless the check is “substantially related”  to job duties, according to the National Conference of State Legislatures. Hawaii and Washington already have such bans in place.
In fact, the Oregon bill has passed, but has not yet been signed into law by the Governor, although it likely will be. The bill would exempt banks, credit unions and law employment agencies. It would also exempt employers if the credit information is relevant to … Continue Reading

You may have heard that Congress is considering blocking employer access to credit report data. Many feel that denying employment due to credit problems, when the candidate is otherwise qualified, is unfair, particularly on the heels of a recession.

On the other hand, hiring without due diligence can place you in danger of a negligent hiring lawsuit. Plus, employers often need help in making a decision when they are on the fence about someone, or when they have a number of qualified candidates.  And in some cases, this particular information might be very helpful.

However, there remains  a lot of  ambivalence nationwide regarding credit reports for … Continue Reading