Final Rules Published Regarding Use of Credit History

June, 2010

Earlier this year, the Oregon legislature passed a bill prohibiting employers from using credit histories for any employment purposes, including hiring, discharge, promotion and compensation. On June 1, BOLI published the final rules regarding the new law which is scheduled to become effective on July 1, 2010.

Many employers have raised questions about some of the exceptions under the new law. In particular, is the exception which allows use of credit history if it is "substantially job-related." The final rules define this as follows:

"An essential function of the position at issue requires access to financial information, not customarily provided in a retail transaction that is not a loan or extension of credit. Financial information customarily provided in a retail transaction includes information related to the exchange of cash, check and credit or debit cards.”


"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 fidelity bond.”

The new law also has narrow exceptions for industries that are required by state and federal law to use credit histories for employment purposes, such as banks, credit unions, and public safety.

Oregon employers who are currently using credit checks must ensure they fit into one of the exceptions or cease the practice by July 1 of this year. View final rules.


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