Criminal Background Check Rules in Oregon

Employers in Oregon often wonder whether there are special rules around asking about criminal history or conducting background checks. While criminal background checks are not required in most industries, many employers use them as part of their hiring process. So are there special rules in Oregon? Yes.

Oregon’s Ban-the-Box Law

Oregon has a statewide “Ban-the-Box” law, which restricts when employers can ask (including on an application) about an applicant’s criminal history. Specifically:

• In most situations, you may not ask applicants about criminal history on an application or before a first interview. However, there are exceptions in the following cases:

• Federal, state or local law requires the consideration of an applicant’s criminal history;
• The employer is a law enforcement agency or in the criminal justice system; or
• The employer is seeking a non-employee volunteer.

• If you do not conduct interviews, you cannot ask until after a conditional offer of employment is made.

Portland’s Stricter Ordinance

If you have six or more employees in Portland, the rules go even further. Portland’s ordinance requires that you wait until after a conditional offer of employment before asking about criminal history or running a background check regardless of whether you conduct interviews.

Using a Third-Party Agency

Many employers use third-party consumer reporting agencies to conduct background checks. If you do, the Fair Credit Reporting Act (FCRA) applies. You must:

1. Provide a clear, standalone written disclosure that a background check will be conducted for employment purposes.
2. Obtain the applicant’s written authorization before proceeding.

A consumer reporting agency is any business that, for a fee, collects and provides information such as criminal history, employment history, or reference checks.

When Results Come Back

If the results raise no concerns, you can move forward with the applicant. But if you’re considering rejecting the applicant based on their report, the FCRA requires that you follow the Adverse Action process.

Step 1: Pre-Adverse Action Notice

Before making a final decision, you must send the applicant:

• A copy of the background check report.
• A summary of their rights under the FCRA.

The applicant must be given a reasonable opportunity (generally five to seven days) to review the results and provide an explanation or additional information.

Step 2: Consideration

After the waiting period, reevaluate the results and any information provided by the applicant. You must weigh:

• The nature and gravity of the offense.
• The time that has passed since the offense.
• The nature of the job being sought.

Portland employers must also avoid considering:

• Arrests not leading to conviction (unless charges are pending).
• Convictions that have been voided or expunged.
• Non-violent offenses resolved through diversion or deferral programs.

Step 3: Adverse Action Notice

If you decide not to move forward:

• Send a written Adverse Action Notice explaining your decision. The decision must be based on the conviction being job-related and consistent with business necessity.
• Portland employers must specifically identify the convictions relied upon.
• Inform the applicant of their right to dispute the decision and to receive a free copy of their background check results if requested within 60 days.
• Make it clear the decision was made by you, not the reporting agency.
• Keep application materials for one year from the date the position is filled. Once the retention period has passed, properly dispose of background check materials (e.g., shredding, incinerating, or secure electronic deletion).

Why Compliance Matters

The FCRA Adverse Action process is sometimes overlooked, especially when employers need to fill a role quickly. But skipping these steps can expose your organization to civil lawsuits and statutory damages. Following the law not only reduces risk, it also ensures fairness and transparency in your hiring process.

For more details, including sample Pre-Adverse and Adverse Action letters, visit the Cascade HR Library or reach out to us.