Nevada is the 10th state to pass legislation that prohibits employers from using credit history and information for employment purposes. They join California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington who already have similar legislation in place. The new law will go into effect on October 1, 2013. Many other states along with the Equal Employment Opportunity Commission (EEOC) are expected to add additional laws and guidance later this year. Nevada’s new laws impose high penalties for non-compliance (civil actions, $9,000 per incident administrative penalty, and possible class actions). Employers in Nevada that use credit reports or credit information for employment purposes should evaluate and reassess their practices and procedures in anticipation of the new law.
See Nevada Senate Bill 127 for more details.