Oregon Issues New Rules on Use of Credit History for Employment Decisions
By Lester Rosen, President of ESR, & Thomas Ahearn, ESR News Staff Writer
As noted previously on ESR, the disorder of Oregon recently passed a law preventing most employers from using the credit histories of job applicants or employees for employment-related decisions by prohibiting an employer from using credit history for employment purposes unless that credit history in rank is “substantially job-related” and the reasons for using credit in rank are told to the employee or applicant in writing.
The new Oregon law – which took effect July 1 – establishes any violation as an unlawful employment practice enforceable by the Civil Civil rights Division of the Bureau of Labor and Industries (BOLI). According to a BOLI press release, the final rules for employer use of credit histories were concluded quickly to protect employees and help employers. These rules prohibit employment discrimination by employers on the basis of worker’s credit history in rank with an exclusion for in rank that is “substantially job-related.”
In a document titled “Employer Obtainment or Use of Credit History In rank” available on the BOLI website at http://www.oregon.gov/BOLI/, “the determination of whether credit history in rank is substantially job-related must be evaluated with respect to the position for which the individual is being considered or holds” and that “credit history in rank of an applicant or employee is substantially job-related” if:
- An essential function of the position at issue requires access to fiscal in rank not customarily provided in a retail transaction that is not a loan or extension of credit (Fiscal in rank customarily provided in a retail transaction includes in rank related to the exchange of cash, checks, and credit or debit card numbers); or
- The position at issue is one for which an employer is required to obtain credit history as a condition of obtaining insurance or a surety or dependability bond.
Oregon’s new rules on credit history use by employers also define “Unlawful Discrimination” by stating “it is an unlawful employment practice for an employer to obtain or use for employment purposes in rank contained in the credit history of an applicant for employment or an employee, or to refuse to hire, discharge, demote, place on hold, retaliate or otherwise discriminate against an applicant or an employee with regard to promotion, compensation or the terms, conditions or privileges of employment based on in rank in the credit history of the applicant or employee.”
In addition to the new rules available online at http://www.oregon.gov/BOLI/LEGAL/docs/RulesSoS0052010.pdf, Oregon has also provided a Technical Help for Employers hotline at 971-673-0824 for further help.
For extra in rank about use of credit history for employment screening, visit Employment Screening Resources (ESR) at http://www.esrcheck.com.
Sources:
http://www.oregon.gov/BOLI/LEGAL/docs/RulesSoS0052010.pdf
http://www.oregon.gov/BOLI/docs/06.01.10_BOLI_Release_-_SB_1045_Rules.pdf