Most employers cannot legally obtain or use, for employment
purposes, an applicant’s or employee’s credit history information.
Q: What does “credit history” mean?
A: ORS 659A.320(4), defines “credit history” as any
communication of any information by a consumer reporting agency that bears on a
consumer’s creditworthiness, credit standing or credit capacity.
Q: What does the law prohibit?
A: It is unlawful to obtain or use for employment purposes an applicant’s or
employee’s credit history information. The law also specifically
prohibits the refusal to hire or to promote, the termination, discipline or
demotion of, or the retaliation or discrimination against an applicant or
employee based on that individual’s credit history. It is unlawful to retaliate
against an employee or applicant because the person has filed a complaint,
testified or assisted in a proceeding in connection with ORS 659A.320. It is also unlawful to aid, abet, incite,
compel or coerce any unlawful act under the statute, or to attempt to do so.
Q: Are all employers covered by the law?
A: No. The law makes exceptions for: 1) federally insured banks and
credit unions; 2) law enforcement agencies in the employment of public safety
officers who are peace officers commissioned by a city, port, school district,
mass transit district, county, university (under ORS 352.121 or 353.125),
Indian reservation, the Superintendent of State Police (under ORS 181A.340),
the Criminal Justice Division of the Department of Justice, The Lottery
Commission or the Governor, or who are regulatory specialists with the Liquor
Control Commission. The exception apples
if such persons are responsible for enforcing the criminal laws of the state or
ordinances related to airport security ; and 3) for employers that are required
by law to use individual credit histories for employment purposes.
Finally, there is an exception for employers that obtain or use credit history
information because it is “substantially job-related” and only then if the
reasons for use of the information are disclosed in writing to the employee or
Q: What does “substantially job-related” mean?
A: Credit history information is substantially job-related by definition
if: (1) an essential function of the job requires access to financial
information not customarily required in a retail transaction other than a loan
or extension of credit (i.e., beyond check information, credit card numbers or
debit card numbers); or (2) the employer is required to obtain credit history
information as a condition of bonding or insuring the employee. OAR 839-005-0080.
Employers should use the substantially job-related exception with care.
For many positions, such as mechanics, cashiers, receptionists, housekeepers
and wait-staff, a credit history is not going to be substantially
job-related. Merely having access to cash or assets is probably insufficient,
since the rule above references access to financial information. If an essential job function of an employee
requires that employee to obtain such things as financial institution account
numbers, dates of birth and social security numbers and driver’s license
numbers or amounts and sources of income, the employer could make an argument
that obtaining that clerk’s credit history information is “substantially
job-related” and therefore permissible.
Updated: May 2017
Nothing on this
website is intended as legal advice. Any responses to specific questions
are based on the facts as we understand them, and not intended to apply to any
other situations. This communication is not an agency order. If you
need legal advice, please consult an attorney. We attempt to update the
information on this website as soon as practicable following changes or
developments in the laws and rules affecting Oregon employers, but we make no
warranties or representations, express or implied, about whether the
information provided is current. We urge you to check the applicable
statutes and administrative rules yourself and to consult with legal counsel
prior to taking action that may invoke employee rights or employer responsibilities
or omitting to act when required by law to act.
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