Employers and businesses that are located in the state of Oregon must consider both federal and state laws regarding pre-employment screening and background checks when it comes to hiring new employees. The following is a complete overview of Oregon background checks and screening, along with the rules and provisions regarding them.
Employers and businesses throughout the state should be aware of the various Oregon background check laws and requirements they must adhere to. These rules and legislation apply to conducting more traditional background checks and general pre-employment screening of applicants, candidates, and/or new hires.
Part of an employers’ background check process typically starts with the pre-screening of applicants. However, there are laws in place to help protect employees from discrimination during this part of the job application process.
Oregon is one of many states that practice “Ban the Box”. The purpose and scope of Oregon’s “Ban the Box” is to dismantle hiring practices that lead to barriers to employment for ex-offenders as well as battle the impact of institutional racism when it comes to job searches. Specifically, the term “ban the box” refers to the box that an applicant would check off on a job application indicating that they have a criminal history.
According to the law, it is illegal to ask about an applicant’s criminal history prior to the interview stage of the hiring process. If no interview is conducted, then an employer may not require an applicant to disclose any criminal history until a conditional offer has been made.
For the city of Portland, Oregon specifically, employers may not inquire about an applicant’s criminal history until a conditional job offer has been made.
If any employment decision is made based on any collected criminal history, then an employer must ensure that the offense that the decision is based on is job-related and consistent with business necessity.
Those looking to file complaints against “Ban the Box” violations, can do so on the Oregon Bureau of Labor & Industries (BOLI) website.
Oregon “Ban the Box” covers all employers and businesses located in the state of Oregon, with specific coverage rules applying to Portland businesses.
Specifically, the Portland, Oregon ordinance covers any employer with six or more employees, so long as the job being performed is done so in Portland for the majority of all hours worked.
The Portland ordinance does not cover any federal, state jobs, or employers with fewer than six employees.
Oregon “Ban the Box” does not apply:
Under the Portland, Oregon ordinance, an employer may consider an applicant’s criminal history prior to a conditional offer if:
In addition to laws regarding criminal history, Oregon’s Pay Equity Law restricts employers from inquiring about or making decisions based on past salary history and compensation.
Under the law, employers may not seek information regarding a candidate’s past compensation until an offer of employment is extended that includes an intended amount of compensation.
Applicants may voluntarily disclose past compensation information to their prospective employer, but the employer may not consider that information when proceeding through the onboarding or hiring process.
Employers in Oregon, however, typically are not allowed to obtain an applicant’s credit history or use that information in an employment-related matter, such as hiring decisions, under the Oregon Job Applicant Fairness Act.
Some exceptions however include:
The definition of “substantially job-related” is determined by two pieces of criteria:
In addition to what is outlined in the proceeding three laws, employers are also restricted from requiring applicants to disclose the following information.
Employers are not allowed to inquire about anything that would require an applicant to identify themselves as a member of a protected class.
A protected class is a group of individuals with a shared characteristic that employers may not use as a basis for employment and employment-related decisions.
Employers can find a table providing an overview of protected classes on Oregon BOLI’s website.
Unless another law states otherwise, employers are restricted from posting a job advertisement that requires applicants to be currently employed already.
Employers may still include employment history and experience in a background check, as well as require that a role be filled internally, only.
While both federal discrimination laws and several Oregon labor laws are in place to help prevent discrimination when it comes to job applications and pre-employment screening, there are also provisions regarding background checks themselves, primarily the Fair Credit Reporting Act (FCRA).
Employers should understand the FCRA, and what to expect when it comes to Oregon background checks.
The FCRA is a federal law that also regulates background checks conducted by employers.
Under the FCRA, any information collected in a background check may only be provided to those specified by the law. Employers who provide information to a reporting agency for a background check have certain legal requirements as well, such as:
In addition, employers who use the information for credit, insurance, or employment purposes must notify the employee when an adverse action is taken as a result of a background check. An adverse action refers to an employer’s decision not to hire a candidate based on their background check.
Most often, Oregon background checks are conducted with the intent of uncovering an applicant’s criminal history, if any.
However, employers may also want to look for:
According to the Fair Credit Reporting Act (FCRA), background checks can go back seven years.
However, there are certain exceptions. Reports may go back further when…
The amount of time it takes to conduct an Oregon background check varies on the method you take.
For instance, using Oregon’s Criminal Justice Information Services (CJIS) will have a turnaround of 14 days, according to their website.
Third-party investigative services are typically a faster and more comprehensive approach.
There are several ways that employers may conduct and collect information regarding background checks.
The first way is to go through the state of Oregon itself. Employers may legally collect and obtain public records by submitting requests through various state department sites including the Oregon Department of Justice, the Oregon Health Authority, and the Oregon Judicial Department. Criminal Background checks are processed through Oregon’s Criminal Justice Information Services, for a fee.
This method is time-consuming, tedious, and complicated, in addition to being less accurate and more limited in terms of the information gathered. The other option for conducting background checks is to simply go through a background check service.
Properly managing an accurate, efficient, and secure background check process that keeps the company compliant is critical and invaluable to vetting and ensuring new hires are the right hire.
If you are an Oregon-based employer looking for help with conducting your background checks, then look no further. A great Oregon-based HR and payroll provider, like GNSA, offers Human Resources (HR) management solutions that help make HR processes like background checks a breeze.
Contact GNSA today and see how they are already helping countless businesses with their background checks.