New Ore. law prohibits credit-history use for most employment
SALEM, Ore. – Gov. Ted Kulongoski on Monday signed into law a series of bills passed by legislators during the 2010 legislative session. One of those bills, Senate Bill 1045, makes it illegal for most employers to pull their employee's credit reports.
SB 1045 prohibits the use of credit history for employment purposes including hiring, discharge, promotion and compensation. It provides exceptions for financial institutions, public safety offices and "other employment if credit history is job-related and use is disclosed to applicant or employee," according to a press release distributed Monday from the governor's office.
The new law classifies a violation of this rule as an "unlawful employment practice." Violations of these practices can be enforced through the Bureau of Labor and Industries and through civil action.
The rule official goes into effect July 1, 2010. However, it appears the governor's office has declared this law "an emergency," which would mean it becomes effective immediately.