Effective March 29, 2010, Oregon Governor Kulongoski signed new legislation that prohibits the use of credit history information for employment decision purposes unless the information is both substantially job-related and the employer’s reasons for the use of such information are disclosed to the applicant or employee in writing. Please note that Senate Bill 1045 was initially scheduled for July 1st, but the Governor declared the new guidelines effective immediately.

It is Employment Background Investigations understanding that the only exceptions to this rule are:

(a) Employers that are federally insured banks or credit unions;
(b) Employers that are required by state or federal law to use individual credit history for employment purposes; or
(c) The employment of a public safety officer who is a member of a law enforcement unit, who is employed as a peace officer commissioned by a city, port, school district, mass transit district, county, Indian reservation, the Criminal Justice Division of the Department of Justice, the Oregon State Lottery Commission or the Governor, and who is responsible for enforcing the criminal laws of this state, or laws or ordinances related to airport security.

Violation of these new rules is considered unlawful employment practice, and aggrieved applicants and employees may file a complaint with the Commissioner of the Bureau of Labor to file a civil action.