Oregon SB 1045 Threatens Use of Credit Reports
February 23, 2010
In response to what it perceives as a barrier to people getting jobs, the Oregon Senate has introduced a bill to curb employers’ use of credit reports.
Oregon Senate Bill 1045 would prevent most employers from using a prospective candidate’s credit history into pre-employment screening, promotion or other employment-related decisions. According to The Oregonian “[the] bill would continue to allow businesses to look into an applicant’s criminal and employment history and do other background checks. And certain employers could continue to consider credit histories, such as banks, law enforcement agencies and other businesses that can show credit checks are necessary to evaluate candidates for specific positions.
The proposal will be reviewed by Governor Ted Kulongski and is expected to pass. Oregon is among the states with the highest unemployment rates in the country and is well-known for its liberal policies and practices. Opponents are stating that this law would be anti-business by limiting the information employers can use to make an informed hiring decision.
If the law is passed, Oregon would join Hawaii and Washington as the only states that limit the use of credit reports.
We anticipate that NAPBS will advocate on behalf of employers on this issue and will keep you posted. ??We are, of course, opposed to this bill. As long as credit reports are used legally and without discrimination, employers should have the ability to exercise the rights granted under the Fair Credit Reporting Act (FCRA).
Nick Fishman is the co-founder of EmployeeScreenIQ, a leading, global employment background screening provider, and serves as the company’s executive vice president and chief marketing officer. He pioneered the creation of EmployeeScreen University, the #1 educational resource on employment background checks for human resources, security and risk management professionals. A recognized industry expert, Nick is a frequent author, presenter and contributor to the news media. Nick is also a licensed private investigator in the states of Ohio and Texas.
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