diff --git a/object/user.go b/object/user.go
index 258eb544..36c53bb0 100644
--- a/object/user.go
+++ b/object/user.go
@@ -627,12 +627,10 @@ func AddUser(user *User) (bool, error) {
 		return false, nil
 	}
 
-	if user.PasswordType == "" && organization.PasswordType != "" {
-		user.PasswordType = organization.PasswordType
+	if user.PasswordType == "" || user.PasswordType == "plain" {
+		user.UpdateUserPassword(organization)
 	}
 
-	user.UpdateUserPassword(organization)
-
 	err = user.UpdateUserHash()
 	if err != nil {
 		return false, err