Nevada Becomes The Tenth State To Prohibit The Use Of Credit Information

Nevada joins California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington in enacting legislation to restrict employer’s ability to use credit information for employment purposes. Several other states and the Equal Employment Opportunity Commission (EEOC) are also focused on this area and additional laws and guidance are expected this year. Given the Nevada law’s high penalties for non-compliance (civil actions, $9,000 per incident administrative penalty, and possible class actions) and the national focus on the use of credit information for employment purposes—employers in Nevada that use credit reports or credit information for employment purposes are well advised to evaluate and reassess their practices and procedures in anticipation of the new law’s October 1, 2013 effective date.