Credit Check or no Credit Check for Employees?

May a Nevada employer request employee’s consumer credit report or require employees to submit to a credit check? By Jeff Whitehead.

The answer might surprise as a result of 2013 changes to the law. The answer is yes and no.

As a general rule, employers may not require employees to produce or to submit to credit checks. NRS 613.570. However, employers may request this information if required by federal law, or the information contained in the consumer credit report or other credit information is reasonably related to the position for which the employee or prospective employee is being evaluated for employment, promotion, reassignment or retention as an employee.

Information is reasonably related to such an evaluation if the duties of the position involve:

(a) The care, custody and handling of, or responsibility for, money, financial accounts, corporate credit or debit cards, or other assets;

(b) Access to trade secrets or other proprietary or confidential information;

(c) Managerial or supervisory responsibility;

(d) The direct exercise of law enforcement authority as an employee of a state or local law enforcement agency;

(e) The care, custody and handling of, or responsibility for, the personal information of another person;

(f) Access to the personal financial information of another person;

(g) Employment with a financial institution; or

(h) Employment with a licensed gaming establishment. NRS 613.580.

As is evident, if an employee has access to the employer’s money or to client money, then the employer may request a credit check. But if the employee doesn’t’ have such access, the employer is proscribed from conducting a credit check.

An action may be maintained to require the employer to employee the applicant or to promote the applicant, plus reasonable attorney’s fees and costs. NRS 613.590. A Court adjudicating the matter is also empowered with injunctive relief.

This Act is a little known section in Nevada labor law, that provides meaningful exceptions for companies with employees who access funds and employees with protections who are not accessing financial data.