On May 25, 2013, Nevada Governor Brian Sandoval signed Senate Bill 127 into law, which goes into effect on October 1, 2013. The Bill amends Chapter 613 of the Nevada Revised Statutes covering “Employment Practices”. Senate Bill 127 adds a new unlawful employment practice, employers conditioning employment on a consumer credit report or other credit information.
Nevada joins California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington in enacting legislation to restrict the use of credit information for employment purposes.
According to Seyfarth Shaw LLP, the new law adopts a very broad definition of employer to include private employers and “any person acting directly or indirectly in the interest of an employer in relation to an employee or prospective employee.” These Nevada employers are now prohibited in their attempts to:
• Directly or indirectly require, request, suggest or cause any employee or prospective employee to submit a consumer credit report or other credit information as a condition of employment;
• Use, accept, refer to or inquire concerning a consumer credit report or other credit information;
• Discharge, discipline, discriminate against in any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee: (a) who refuses, declines or fails to submit a consumer credit report or other credit information; or (b) on the basis of the results of a consumer credit report or other credit information; or
• Discharge, discipline, discriminate against any manner or deny employment or promotion to, or threaten to take any such action against any employee or prospective employee who has pursuant to the new law: (a) filed any complaint or instituted or caused to be instituted any legal proceeding; (b) testified or may testify in any legal proceeding instituted; or (c) exercised his or her rights, or has exercised on behalf of another person the rights afforded to him or her.
Besides bringing a civil action against the employer, under the new law, if an employer violates sections 2 to 9, inclusive, of this act, the Labor Commissioner may impose against the employer an administrative penalty (not to exceed $9,000 for each such violation).
To view Senate Bill 127, click here: http://www.leg.state.nv.us/Session/77th2013/Bills/SB/SB127.pdf