Nevada restricts use of consumer credit reports for employment purposes

Nevada’s governor signed a bill to limit employer use of an applicant’s, or an employee’s, credit history in hiring and personnel decisions.  (S.B. 127.)

The new Nevada law is expansive.  It defines “employer” as any person acting directly or indirectly in the interest of an employer in relation to an employee or prospective employee.

With certain exceptions, the law prohibits employers from directly or indirectly requiring, requesting, suggesting or causing any employee or prospective employee to submit a consumer credit report or other credit information as a condition of employment.

The law allows employees and prospective employees to sue in court, allowing the individual to obtain relief, including employment of a prospective employee, reinstatement or promotion of an employee, and the payment of lost wages and benefits.  The law also permits the court to award attorneys’ fees and costs to the prevailing party (the worker or employer).  In addition, the statute allows for class claims (collective claims brought for more than one worker).  Nevada’s Labor Commissioner also has the power to bring such a civil action.

Nevada is the tenth state to restrict employer use of credit checks, joining California, Maryland, Connecticut, Hawaii, Illinois, Washington, Oregon, Vermont, and Colorado, as well as the City of Chicago.

California’s restriction on credit checks in employment was signed into law by Governor Brown in October 2011, effective January 2012. (A.B. 22.)

For more information, contact your labor law counsel.

By Lisl Duncan | June 10, 2013

Legal Developments