Blog

 
     

Nevada Restricts Employers’ Use of Consumer Credit Reports or Other Credit Information

By Michael Klazema on 6/5/2013

In a growing trend, Nevada joins nine other states to prohibit the use of consumer credit reports or other credit information for employment purposes. The new legislation goes into effect on October 1, 2013.

The legislation prohibits employers from:

1.     Requiring an employee or prospective employee to submit to a credit report or other credit information as a condition of employment.

2.     Using, accepting, referring to, or inquiring about a consumer credit report or other credit information.

3.     Taking or threatening adverse action against a person who refuses to submit to a consumer credit report.

4.     Taking or threatening adverse employment action based on an individual’s consumer credit report or other credit information.

5.     Taking or threatening adverse action against an employee or prospective employee in retaliation for exercising his or her rights or the rights of another person. This includes filing a complaint or a legal proceeding, or testifying in a legal proceeding.

The law applies to both private and public employers in the State of Nevada, with few exceptions. Employers may request or consider consumer credit report or other credit information for employment purposes only if it is required or authorized to do so by a state or federal law. Credit information may also be considered if an employer reasonably believes that an employee or applicant has engaged in activity which may constitute a violation of a state or federal law. The final exception to this new law is the credit information must be “job related.” To apply this exception, the duties of the position must involve:

1.     Responsibility for financial assets or employment with a financial institution;

2.     Access to confidential or proprietary information;

3.     Managerial or supervisory responsibility;

4.     Direct exercise of law enforcement authority as a government employee;

5.     Responsibility for or access to another person’s financial information; or

6.     Employment with a licensed gaming establishment.

If an employer violates the new law, civil remedies include the right of employment for prospective employees, and the right of reinstatement or promotion for employees. The employer may also be assessed lost wages and benefits, as well as reasonable costs and attorneys’ fees. The new law allows enforcement by way of a class action.

The law also allows the state’s Labor Commissioner to impose administrative penalties of up to $9,000 per violation and to bring an action for an injunction requiring compliance with the law.

Other states with similar legislation are California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington.

 

This new legislation may be accessed here: http://www.leg.state.nv.us/Session/77th2013/Bills/SB/SB127_EN.pdf



Tag Cloud
Categories
Recent Posts

Latest News

  • December 04 Chicago Public Schools has dismissed hundreds of employees, coaches, vendors, and volunteers based on background check findings. The district recently vowed to re-check the majority of its 68,000 employees after a Chicago Tribune investigation revealed holes in its background check policies.
  • November 29 Striving to create a safer environment more conducive to productive training and leadership development, the Army has recently moved to adopt a uniform policy of background checks for certain roles. 
  • November 27 California’s biggest public school district is waiving the cost of volunteer background checks. The move is meant to encourage more family - and community members to get involved with the school district.
  • November 22 Contractors play an important role in the workforce, delivering services to both individuals and organizations. Vetting contractors for suitability continues to be a challenge, as two recent articles prove.
  • November 21 When it comes to background and pre-employment checks, it can be instructive to look at the characteristics of the ten most massive U.S. employers.
  • November 20 The #MeToo movement is bringing about legislative changes employers need to know about. We review some of the laws recently passed in California.
  • November 19

    Will a criminal conviction show up on your background check forever? In most states, there is a year limit for how long background check companies can report older criminal information.


  • November 15

    Replacing an inconsistent array of procedures, Ontario's government has passed into law a reform act intended to clarify how police departments should handle requests for information to be used in background checks. 


  • November 14 The federal government has vowed to cut its backlog of security clearance background checks in half by spring. Currently, the backlog is approximately 600,000 names strong.
  • November 12 To ensure the best hires, DFWSPF has implemented a stringent employee screening process—one that includes background searches through backgroundchecks.com.