At-a-Glance Compliance Overview

State Mini-FCRA Laws

Oregon does not maintain a comprehensive “mini-FCRA” statute regulating consumer reporting agencies. Employment background checks obtained through third-party screening providers are governed primarily by the federal Fair Credit Reporting Act (FCRA).

Employers obtaining consumer reports must comply with federal requirements, including providing a clear written disclosure, obtaining written authorization from the applicant, and following pre-adverse action and adverse action procedures if the report influences an employment decision.

Oregon regulates employment screening through targeted statutes governing criminal history inquiries and credit report use.

Criminal Record Reporting Rules

Oregon does not impose a state-specific time limit on reporting criminal convictions in consumer reports. As a result, convictions may generally be reported without time limitation under FCRA §605(a)(5) unless another law restricts reporting.

Non-conviction information is governed by federal law. Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests, indictments, or other adverse non-conviction information that is more than seven years old.

Oregon separately regulates the removal of criminal records through its set-aside statutes.

Record Set-Aside

Under ORS §137.225, individuals may petition the court to have certain arrests, charges, or convictions set aside. When a conviction is set aside, the individual may generally state that the conviction did not occur in most employment situations.

Once a record has been set aside under Oregon law, it generally should not appear in standard employment background checks.

Fair Chance / Ban-the-Box Law

Oregon regulates criminal history inquiries through its statewide ban-the-box statute, codified at ORS §659A.360.

Employer Coverage

The law applies to most public and private employers operating in Oregon.

Criminal History Inquiry Timing

Employers may not inquire about an applicant’s criminal convictions until after the initial interview.

If the employer does not conduct interviews, criminal history inquiries may occur only after a conditional offer of employment.

Employers must therefore remove criminal conviction questions from initial job applications.

Credit Check Restrictions

Oregon restricts employer use of consumer credit reports through ORS §659A.320.

General Rule

Employers may not obtain or use an applicant’s credit history for employment purposes.

Exceptions

Employers may obtain credit reports only when the position meets certain statutory exceptions, including positions involving:

• access to financial information

• fiduciary responsibilities

• financial institutions

• positions required by law to obtain credit history.

Employers should ensure the position falls within one of these statutory exceptions before requesting a credit report.

Cannabis Use and Drug Testing Rules

Oregon legalized recreational marijuana through the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act.

Despite legalization, Oregon law allows employers to maintain drug-free workplace policies and to prohibit employees from being impaired while working.

Employers may enforce workplace drug testing policies and discipline employees who violate workplace drug policies. Oregon law does not require employers to accommodate recreational marijuana use in the workplace.

Pay Equity and Salary History Rules

Oregon regulates compensation practices through the Oregon Equal Pay Act, codified at ORS §652.220.

Salary History Ban

Employers may not ask applicants about their salary history before making an offer of employment that includes compensation.

Employers also may not screen applicants based on wage history or rely on salary history when determining compensation.

Applicants may voluntarily disclose wage history after an offer has been made.

Pay Transparency

Oregon does not currently impose a statewide requirement that employers include salary ranges in job postings.

Local Fair Chance or Screening Ordinances

Portland

The City of Portland adopted a Fair Chance Ordinance governing criminal history inquiries for employers operating within the city. The ordinance appears in Portland City Code Chapter 23.10.

The law applies to employers with six or more employees with at least one employee working within Portland.

Under the ordinance:

• employers may not conduct criminal background checks until after a conditional offer of employment has been made

• employers must conduct an individualized assessment before rescinding a job offer based on criminal history.

The ordinance requires employers to consider factors including:

• the nature and gravity of the offense

• the time elapsed since the offense

• the nature of the job duties.

Employers must also provide applicants with written notice and an opportunity to respond before taking adverse action based on criminal history.

Employers hiring in Portland must comply with both the statewide ban-the-box law and the Portland ordinance.

Record Sealing / Clean Slate Laws

Oregon permits individuals to have certain criminal records set aside under ORS §137.225.

When a record is set aside under this statute, the individual may generally state that the arrest or conviction did not occur in most employment situations.

Employers should ensure that background screening providers exclude records that have been set aside from employment background reports.

Key Statutes

• Oregon Ban-the-Box Law — ORS §659A.360
• Oregon Credit Check Restriction — ORS §659A.320
• Oregon Equal Pay Act — ORS §652.220
• Oregon Record Set-Aside Statute — ORS §137.225

Employer Compliance Checklist

Employers conducting background checks in Oregon should implement several compliance practices.

Remove criminal conviction questions from initial employment applications.

Delay criminal history inquiries until after the first interview, or after a conditional offer if no interview occurs.

Limit credit checks to positions that qualify under Oregon’s statutory exceptions.

Ensure background screening providers exclude criminal records that have been set aside under Oregon law.

Delay salary history inquiries until after making a compensation offer.

Follow Portland’s fair chance hiring ordinance when hiring within the city.