Nevada Now Regulates Use of Credit Reports

Nevada is now the 10th state to regulate employer use of consumer credit reports as part of the background screening process.

Senate Bill No. 127 which went into effect on October 1, 2013 states that “Relating of employment practices; prohibiting employers from conditioning employment on a consumer credit report or other credit information; providing remedies and administrative penalties; and providing other matters properly relating thereto.”

 

Section 7 of the bill specifically states that it is unlawful for an employer in the state of Nevada to:

1. Directly or indirectly, require, request, suggest or cause any employee or prospective employee to submit a consumer credit report or other credit information as a condition of employment;

2. Use, accept, refer to or inquire concerning a consumer credit report or other credit information;

3. Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee:

(a) Who refuses, declines or fails to submit a consumer credit report or other credit information; or

(b) On the basis of the results of a consumer credit report or other credit information; or

4. Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee who has:

(a) Filed any complaint or instituted or caused to be instituted any legal proceeding pursuant to sections 2 to 9, inclusive, of this act;

(b) Testified or may testify in any legal proceeding instituted pursuant to sections 2 to 9, inclusive, of this act

 

Nevada now joins California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington in restricting employers from utilizing consumer credit reports in the hiring process.

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