Total Articles: 6
CALIFORNIA STATE EMPLOYMENT CREDIT CHECK LAW TAKES EFFECT
California employers may wish to obtain employees' and applicants' credit information as part of their hiring processes and for other employment-related reasons. Assembly Bill 22, which took effect on January 1, 2012, significantly restricts employers' ability to procure credit reports. The new law specifically applies to credit checks and does not address criminal record and other background checks.
NEW CALIFORNIA LAW OUTLAWS USE OF CREDIT REPORTS FOR SCREENING MOST JOB APPLICANTS
Governor Brown recently signed Assembly Bill 22, which will prohibit California employers from obtaining "consumer credit reports" for most employment purposes. Under this new law, effective January 1, 2012, an employer may only seek a credit report for an applicant or employee if one of the following applies:
California Bans Employee Credit Checks With Narrow Exceptions
On October 9th, Governor Brown signed AB 22 into law. Effective January 1, 2011, the new law prohibits the use of a consumer credit report for employment purposes, with certain exceptions listed below.
Credit Checks In California Now Tougher Than Ever
Effective January 1, 2012, California employers will have to avoid yet another potential legal hazard that haunts businesses with the threat of costly penalties: the unauthorized use of consumer credit reports regarding job applicants and current employees.
New California Law Greatly Restricts Employers Ability to Obtain and Use Credit Reports
Effective January 1, 2012, California will impose significant restrictions on an employer’s ability to obtain a credit report for employment purposes.
California Joins States Restricting Use of Credit Reports for Employment Purposes
On October 10, 2011, the Office of California Governor Jerry Brown announced that Governor Brown had signed AB 22, legislation that adds a new provision to the California Labor Code and amends the state's Consumer Credit Reporting Agencies Act (CCRAA)1 to restrict the discretion that private and public sector employers have to use "consumer credit reports"2 for hiring and personnel decisions. Together, the new laws, which take effect on January 1, 2012, limit when employers lawfully can use consumer credit reports and impose notice and disclosure obligations on employers who intend to do so.
