Can an Oregon Employer run a Credit Check as Part of a Background Check?

20 Jun Can an Oregon Employer run a Credit Check as Part of a Background Check?

Oregon Senate Bill (SB) 1045, was signed into law in February 2010 and declared to be effective immediately, prohibits the use of credit histories of job applicants in making employment-related decisions including hiring, discharge, promotion, and compensation.

However, SB 1045 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. The exceptions to the law include the following circumstances:

  • Employers that are federally insured banks or credit unions;
  • Employers that are required by state or federal law to use Individual credit history for employment purposes;
  • The employment of a public safety officer, or
  • Employers that can demonstrate that the information in a credit report is substantially job-related AND the employer’s reasons for the use of such information are disclosed to the employee or prospective employee in writing.