Prohibition of Credit History for Employment Purposes

Effective immediately, Washington State, Oregon, and Hawaii have enacted new laws prohibiting the use of credit histories for employment purposes including hiring, discharge, promotion, and compensation.

The provides exceptions for financial institutions, public safety offices, and other employment if credit history is job-related and use is disclosed to the applicant or employee.

The law establishes any violation as unlawful employment practice, enforceable through the Bureau of Labor and Industries and civil action.

We recommend our clients consult with their legal counsel prior to ordering credit reports for employment purposes.

For more information about these laws might affect you, it is highly recommended you consult with an attorney. Before hiring or performing a credit check on any prospective employee from these states, be sure you understand the laws clearly.