State Legislation: Credit Checks

A new law (formerly S.B. 1045) recently enacted in Oregon will prohibit most employers from conducting a credit check on current or prospective employees. The law exempts some types of employees—such as those who work at federally insured banks and credit unions, law enforcement personnel, airport security, and any other employees who must undergo a credit check as a matter of law. The law also allows an employer to conduct a credit check if it is “substantially job-related.” To exercise this exemption, employers must disclose the reasons for the check to the employee in writing. The law will not affect the use of other types of background checks.



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