8-6-2007
New law says credit checks
must be job related
When Governor Christine Gregoire signed Senate Bill 5827 into law, employers became prohibited from obtaining credit reports of job applicants or employees unless the information is “substantially job related,” and the employer’s reasons for obtaining such information are disclosed to the applicant in writing.

Employers may continue to perform background checks, but they must now make sure that the information they obtain (or that is provided to them by an outside investigation firm) does not include an applicant’s credit information (unless it is job related).

Employers should also review their job descriptions to determine which, if any, of their positions warrant seeking credit information and notify applicants of this in writing.