Employer News
Credit Checks - Be careful when used in employment
In the 2010 special session, the Oregon Legislature made it unlawful for employers to use credit histories when making most employment decisions. It is now generally illegal to obtain information in an applicant's credit history or to make employment decisions based on credit information. Employees or applicants for employment can file a complaint with the Bureau of Labor and Industries (BOLI) or sue an employer that violates the statute and recover attorney's fees.
The rule prohibiting use of credit history has some exceptions. An employer can still use information from an individual's credit history in making an employment decision if the employer "can show that the information is substantially job-related."
Credit history is substantially job-related if:
1. The employee will have access to financial information (other than information provided in retail transactions) to perform essential functions of his or her position; or
2. The employer is required to obtain credit history for the particular position in order to obtain insurance, a surety, or a fidelity bond.
Under the final BOLI rules, the employer must inform the employee or applicant in writing that the person's credit information may be obtained and explain the reasons why it will be used.
The rule prohibiting use of credit history has some exceptions. An employer can still use information from an individual's credit history in making an employment decision if the employer "can show that the information is substantially job-related."
Credit history is substantially job-related if:
1. The employee will have access to financial information (other than information provided in retail transactions) to perform essential functions of his or her position; or
2. The employer is required to obtain credit history for the particular position in order to obtain insurance, a surety, or a fidelity bond.
Under the final BOLI rules, the employer must inform the employee or applicant in writing that the person's credit information may be obtained and explain the reasons why it will be used.