Nevada is the Latest State to Limit the Use of Credit Reports for Employment Purposes

Nevada Limits Use of Credit Reports for Employment Purposes

Special Announcement to all State of Nevada employers

The State of Nevada has passed Senate Bill 127, which limits the use of credit reports by employers. The bill was signed by the governor on 05/25/2013 and goes into effect on 10/01/13.

The law amends Chapter 613 of the Nevada Revised Statutes with the following:

Sec. 7. Except as otherwise provided in section 7.5 of this act, it is unlawful for any employer in this State to:

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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; or

5. Exercised his or her rights, or has exercised on behalf of another person the rights afforded to him or her pursuant to sections 2 to 9, inclusive, of this act.

Sec. 7.5. An employer may request or consider a consumer credit report or other credit information for the purpose of evaluating an employee or prospective employee for employment, promotion, reassignment or retention as an employee if:

1. The employer is required or authorized, pursuant to state or federal law, to use a consumer credit report or other credit information for that purpose;

2. The employer reasonably believes that the employee or prospective employee has engaged in specific activity which may constitute a violation of state or federal law; or

3. The information contained in the consumer credit report or other credit information is reasonably related to the position for which the employee or prospective employee is being evaluated for employment, promotion, reassignment or retention as an employee. The information in the consumer credit report or other credit information shall be deemed reasonably related to such an evaluation if the duties of the position involve:
(a) The care, custody and handling of, or responsibility for, money, financial accounts, corporate credit or debit cards, or other assets;
(b) Access to trade secrets or other proprietary or confidential information;
(c) Managerial or supervisory responsibility;
(d) The direct exercise of law enforcement authority as an employee of a state or local law enforcement agency;
(e) The care, custody and handling of, or responsibility for, the personal information of another person;
(f) Access to the personal financial information of another person;
(g) Employment with a financial institution that is chartered under state or federal law, including a subsidiary or affiliate of such a financial institution; or
(h) Employment with a licensed gaming establishment, as defined in NRS 463.0169.

This law will require a review of the hiring process in place, including the waiver that all applicants must complete, and may require changes to that process.

The complete text can be found here: Nevada Senate Bill 127

Justifacts recommends that you consult with your legal department to determine what changes, if any, need to be made to your hiring process in order to comply with this law.

It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.

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