Nevada Bans Most Job-Related Credit Checks

Nevada has just become the tenth state to ban most credit background checks by state employers effective Oct. 1, 2013.

Originally, Senate Bill 127 banned every form of credit check by every form of employer, but in a subsequent compromise, financial institutions and casinos were granted exemptions for "job-related" inquiries.

Except for these exemptions, the law prohibits every form of background credit check and every form of employment action based upon credit information.

The law provides for private lawsuits with the "award of reasonable costs and attorneys' fees" as well as class-action litigation. In addition, the Labor Commissioner is empowered to impose administrative penalties of up to $9,000 for each violation.