New Law in Washington State Adds Job Relatedness Requirement for Employers Using Credit Reports.

While all employment screening tools should have a basis in job relatedness, Washington State passed a law in April that went into effect on July 23 that specifically restricts an employer from using credit reports on residents of Washington State unless credit information is substantially related to the job in question or is required by law.  The law specifically states that:

[A] person may not procure a consumer report for employment purposes where any information in the report bears on the consumer’s credit worthiness, credit standing, or credit capacity, unless the information is either: (1) Substantially job related and the employer’s reasons for the use of such information are disclosed to the consumer in writing; or (2) Required by law.

This means that in addition to obtaining written authorization from a candidate to obtain a consumer report and providing the necessary FCRA disclosures (which can be accomplished in the same one page document), disclosure forms for Washington State consumers should also include a written disclosure from the employer as to the job-related reason for obtaining their credit report.

ESS has updated its Disclosure and Authorization document to reflect the new Washington statute.  Copies of the forms can also be found at our client services website: 

Click Here To Go Directly To The Downloadable Forms Section
The new forms will be the first two forms on this page.
User name “ESS” password is “employment”

WA Residents: A credit report or other information regarding credit worthiness, credit standing, or credit capacity may be obtained only if employment includes access to and/or responsibility for business or personal financial information, check-writing or credit/debit card authority, or access to valuables or large amounts of cash.

NOTE: Replace “<<enter company name here>>” at the top of the form with your company name before printing.   

If you feel this disclosure does not sufficiently cover your reasons for obtaining a credit report on a Washington applicant/employee, please contact ESS to have your Disclosure and Authorization document customized for your situation.  You may reply to this email with your request or give us a call if you have any questions.

*ESS does not provide legal advice and nothing presented here or in any other ESS document should be deemed or construed as legal guidance or legal opinion. You are urged to consult your legal department regarding your own situation and/or specific legal questions.

Employment Screening Services, Inc.
627 E. Sprague Avenue
Suite 100
Spokane, WA  99202
1-800-473-7778
e-Update@employscreen.com