Oregon Issues Credit History Check Regulations

The Oregon Bureau of Labor and Industries (BOLI) issued final rules to implement restrictions on an employer's use of information contained in an applicant's or an employee's credit history. BOLI's final rules effectuate Oregon's new law, "The Job Applicant Fairness Act," which will go into effect July 1, 2010. To learn more about the regulations and their implications for employers, continue reading Littler's ASAP, Oregon’s Job Applicant Fairness Act Update - BOLI Issues Final Rules, by Howard Rubin and Janice Kim.

Oregon Supreme Court Decides Employers Not Required to Accommodate an Employee's Use of Medical Marijuana

CaduceusOn April 14, the Oregon Supreme Court ruled that Oregon’s disability discrimination law did not require an employer to accommodate an employee who admitted the use of medical marijuana and sought accommodation based upon it. The court rejected the argument of Oregon’s Bureau of Labor and Industries (BOLI) that an otherwise disabled employee who was compliant with Oregon’s Medical Marijuana Act, Oregon Revised Statutes section 475.300 et seq. (OMMA), was entitled to reasonable accommodation.

Eleven years before Emerald Steel Fabricators hired him, Anthony Scevers began suffering from anxiety, panic attacks, nausea, vomiting, and severe stomach cramps that substantially limited his ability to eat. In 1996, after other medical treatments failed to relieve his symptoms, he turned to medical marijuana. In 2002, he sought and received approval to be on the Oregon OMMA registry, which, subject to some restrictions, entitled him to “engage in ... the medical use of marijuana.”

Emerald Fabricators appealed. On a vote of 5-2, the Oregon Supreme Court reversed. The employer again argued that it was not obligated to engage in the interactive process if Scevers was engaged in the current use of illegal drugs. The court agreed. It went on to conclude that although Scevers was not engaged in the current use of illegal drugs under Oregon law, his use was illegal under the definition contained in federal law. Based upon the Supremacy Clause of the U.S. Constitution, the court said, the federal prohibition on any use of marijuana trumped Oregon’s law permitting it.

The court left open for another day two issues. One was whether federal law prohibited Oregon from immunizing criminal defendants from being prosecuted for possession, manufacture or distribution of marijuana under state law. The other was what level of proof was sufficient to show that a physician monitored or oversaw Scevers’ medical use of marijuana.

The analysis upon which the court relied and the result it reached in Emerald Steel are similar to rulings in other states with medical marijuana laws, including California, Montana, and Washington. Other state courts that address the issue are likely to follow suit.

Interestingly, two justices dissented in the Emerald Steel case. They argued that federal law did not require invalidation of the OMMA because the OMMA did not affect the enforcement of federal law and that under the U.S. Constitution, Oregon was free to adopt a different policy toward marijuana than Congress did. Although their views did not carry the day in the case, they may foreshadow some of the arguments that BOLI may make, should it decide to appeal the decision to the U.S. Supreme Court.

The Emerald Steel decision strongly supports employers across the country – in Oregon and the 13 other states that have some sort of medical marijuana law in place – to reject requests for accommodation of a disability based on the use of medical marijuana. Nevertheless, we recommend several steps to employers concerning the use of medical marijuana:

• Employers should review their policies to ensure they can—to the extent permitted by applicable federal, state and local law—discover, investigate, and respond appropriately to the illegal use of drugs by employees.
• Employers should not simply assume that every employee who asks for an accommodation involving the use of medical marijuana is currently using it. For example, an employee may be investigating treatment options without having used marijuana.
• Even when employees seek accommodations involving the use of medical marijuana, employers should engage in the interactive process in the same way they would do so with other employees seeking accommodation. Such employees may be qualified employees, and there may still be a duty to accommodate them with legal alternatives.
• Employers should carefully train managers to understand what the law is, what rules apply to their workplaces, and what the consequences are of violating them. There is much disinformation about medical marijuana, but the proliferation of state medical marijuana laws attests to the wide support for the limited use of marijuana for medical purposes. Some managers and other employees may know someone whom they believe has benefited from the use of medical marijuana. As a result, they may take actions or fail to take actions, that may undermine employer’s policies and expose those employers to civil or even criminal liability.
• If an employer that wants to make an accommodation based on an employee’s use of medical marijuana—even though it has no legal obligation to do so—the decision may affect how it conducts its drug testing program and how it provides accommodations to similarly-situated employees. Accommodating the employee may expose the employer to civil liability for, e.g., negligent hiring, supervision, or retention; violations of workplace safety rules; and violations of agreements with third parties to provide a drug-free workplace. That decision also may pose a risk to the organization or its managers of criminal liability. Accordingly, such an employer should first discuss with its legal counsel the serious ramifications of making such an accommodation.
 

This entry was written by Christopher Leh.

New Oregon Law Restricting Use Of Credits Checks For Employment Purposes May Signal National Trend

Last week, Oregon joined a growing national trend, apparently in response to the recession and the foreclosure crisis, that restricts the ability of employers to use credit history in employment decisions. Under the Oregon law, it is an unlawful employment practice, except in limited circumstances, for an Oregon employer to use credit history in making hiring decisions or any decision affecting current employees. The law confers on Oregon employees the right to file an administrative complaint or a private lawsuit claiming that the law has been violated. Employees who prevail may recover lost wages and attorney fees. The law becomes effective July 1, 2010.

Hawaii and Washington have recently enacted similar laws. Bills currently are pending in the following states: Connecticut, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Oklahoma, South Carolina, Vermont, and Wisconsin. Legislation also is pending in the United States House of Representatives to amend the Fair Credit Reporting Act to prohibit use of consumer credit checks in employment decisions.

There are several exceptions to the new Oregon prohibition. Specifically, federally insured banks and credit unions, businesses required by law to consider employee credit history, and police and other public employers hiring for law enforcement and airport security may still conduct credit checks. In addition, the law contains a somewhat vaguely worded exception that permits employers to conduct credit checks for “substantially job-related reasons,” so long as those reasons are disclosed to the employee in writing.

Employers should exercise caution in applying the “substantially job related” exception. It is unclear as yet how that exception will be interpreted, either by regulation or the courts. In the meantime, employers should consider obtaining a credit check on an applicant or employee only in those situations where the results of the check would have a significant bearing upon the determination whether the applicant or employee can perform essential job functions and even then should consult with counsel before relying on this exception.

This entry was written by Philip L. Gordon and Jennifer A. Nelson.

New Oregon Law Imposes Most Stringent Information Security Standards Yet On Employers

An Oregon law, signed by Governor Ted Kulongoski in mid-July and effective January 1, 2008, establishes the strictest information security requirements imposed by any state law to date. This new law is especially significant for multi-state employers, as the statute applies to any business which maintains the “personal information” of an Oregon resident regardless of the size of the company’s presence in Oregon. Personal information is defined to include precisely the type of information which all employers maintain about every employee, i.e., first name or initial and last name plus social security number, driver’s license number, or financial account number.

The Oregon law requires employers who maintain personal information on Oregon residents to do the following:

  • Designate a security officer
  • Conduct a risk assessment
  • Assess the safeguards in place to manage the risks
  • Train employees in security policies and procedures
  • Require by contract that service providers maintain adequate security (note the connection to the trend discussed above)
  • Adjust the security program over time to meet changing circumstances
  • Implement adequate physical and technical safeguards
  • Properly dispose of personal information

While Oregon may be one of the less populous states, state legislators appear to be engaging in “one-upmanship” as they enact new data protection statutes. Employers can expect other states to attempt to match or exceed Oregon’s legislation. Consequently, employers can expect that, in the near future, they will need to take a closer look at their information security practices for employee data and take steps to better safeguard that information not as some extra effort but simply to be in compliance with newly enacted state data protection legislation.