LEGAL UPDATE Washington Law Impacts Employer Credit Requests
A new law in Washington State adds a job relatedness requirement for employers using credit reports. Under S.B. 5827: "[A] person may not procure a consumer report for employment purposes where any information contained in the report bears on the consumer's credit worthiness, credit standing, or credit capacity, unless the information is either: (i) Substantially job-related and the employer's reasons for the use of such information are disclosed to the consumer in writing; or (ii) Required by law." S.B. 5827 passed the Senate March 12 on a 43-3 vote. The measure passed by a 60-37 vote in the House April 4 and was sent to the governor April 12. This was signed into law on April 18.
