Nevada Becomes 10th State to Halt Use of Credit Checks in Hiring
Author: David B. Weisenfeld, XpertHR Legal Editor
June 4, 2013
Nevada will soon become the 10th state to prohibit employers from using credit information for employment purposes. Effective October 1, 2013, the new law will make it illegal for any employer in the state to require or even suggest that a job applicant or employee submit to a credit check.
Like similar measures elsewhere, Nevada will ban employers from rejecting job applicants or retaliating against employees based on a refusal to allow the employer check their credit history. However, Nevada goes further than most with a penalty provision that could require noncompliant employers to pay up to $9,000 per violation on top of any legal relief a jilted applicant or employee may obtain by suing the employer for damages.
The state law does provide limited exceptions for situations where the information sought in a credit report is "job related" or if the employer reasonably believes the applicant or employee has engaged in illegal activity.
The May 25 signing of SB 127 into law calls renewed attention to this trend of limiting employer credit checks, especially in the West, as California, Oregon, Washington and Hawaii are all among the states with similar laws on the books.