Nevada Businesses Can No Longer Use Consumer Credit Reports As Hiring Criteria

LAS VEGAS - Nov. 18, 2013 - PRLog -- Tis the season to be hiring, but if you rely on consumer reports to screen job applicants, you may wind up with a lump of coal in your stocking. According to attorney Whit Selert of the Fisher & Phillips Las Vegas office, businesses in Nevada considering hiring additional staff for the holiday season must be mindful of recent Nevada legislative changes that affect how companies screen job applicants. “As of October 1, 2013 it is unlawful to require job applicants in Nevada to provide consumer credit reports as a condition of employment, or to use any such report in making hiring decisions, or any decision regarding promotion or termination.”

Nevada was one of the worst hit States when the housing bubble burst.  Many Nevadans lost their homes. Many missed payments. Many ran into other financial difficulties as the economic effects of the downturn snowballed. That financial information is regularly collected, recorded and available to employers from various consumer reporting agencies.  Many employers have routinely required consumer credit reports from job applicants as part of the evaluation process.  Often, employers view applicants with a negative credit rating less favorably than those with good credit and make hiring decisions based on that factor.

“So many Nevadans have been negatively affected by the economy that Nevada passed legislation giving job applicants new rights and imposing stiff penalties on any employer who violates those new rights,” said Selert. Potential penalties for violating this new law can include an order granting employment to the applicant, ordering reinstatement, promotion or payment of lost wages and benefits, in addition to a penalty from the Nevada Labor Commission up to $9,000 for each violation.

Several specific statutory exceptions were carved out for certain categories of applicants and employees, including those who handle money or work in banks or gaming establishments.  Even in those situations, however, employers must comply with other State and Federal laws requiring notice before or after any action is taken based on a consumer report.

“Given these and other recent changes affecting the hiring process, employers would be well advised to review their job descriptions and application forms, eliminate any language requiring consumer credit reports as a condition of employment and revise their policies, procedures and document retention practices to ensure they are in compliance with this increasingly complicated area of the law,” Selert concluded.

About Fisher & Phillips LLP (www.laborlawyers.com)

Fisher & Phillips LLP is a law firm committed to taking a practical, businesslike approach to solving labor and employment problems for employers. Labor and employment law is all we do, offering deep and broad knowledge and experience in the area of the law we know best. We help clients avoid legal problems, we are dedicated to providing exceptional client service, and we are there when you need us. The firm has 300 attorneys in 31 offices. The offices are in Atlanta, Baltimore, Boston, Charlotte, Chicago, Cleveland, Columbia, Columbus, Dallas, Denver, Fort Lauderdale, Gulfport, Houston, Irvine, Kansas City, Las Vegas, Los Angeles, Louisville, Memphis, New England, New Jersey, New Orleans, Orlando, Philadelphia, Phoenix, Portland, San Antonio, San Diego, San Francisco, Tampa, and Washington, D.C.