Nevada has become the tenth state to prohibit employers from using consumer credit information for the purposes of employment. Nine other states have also passed similar laws that regulate an employers' ability to use credit information for their hiring decisions. Senate Bill 127 amends Chapter 613 of the Nevada Revised Statutes to add that employers conditioning employment on a consumer credit report is an unlawful practice. On May 25, 2013, Nevada signed Senate Bill 127 into law, which goes into effect on October 1, 2013.
Under the new bill, employers may not request or use a candidate's credit information unless it is "job related," or reasonably related to the position, promotion, reassignment, etc. The requirement for the position to be considered "job related" must mean the employee is: (1) responsible for financial assets or employed by a financial institution; (2) has access to confidential information; (3) has managerial or supervisory responsibility; (4) has direct exercise of law enforcement authority; (5) is responsible for or has access to another individual's financial information; or (6) employment with a licensed gaming establishment.
What do we recommend? Employers that are in Nevada that use credit information for hiring decisions are highly advised to evaluate and reassess their company policy, procedures, and practices to make sure they stay in compliance with the new Senate Bill 127 once in goes into effect on October 1, 2013. If you have any questions, please feel free to contact us.