Wed, September 22nd, 2010 - 6:37 am - By Gordon Basichis
Employment credit reports are taking a lot of heat these guys. Several states have limited their use and now the next battlefield is California. Certain civil groups claim the use of consumer credit reports for pre-employment screening is discriminatory and unfair, especial in this present economic downturn. The opposition claims that employer rights are limited and that “increases the potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process.
I know everytime I report anything about this, I get some flack for it. A lot of people in search of work bleieve they are being mistreated. Many employers complain that they are then forced to spend too much time dealing with employee creditors. Anyway, I am not about to comment on this here. My last blog article pertaining to employment credit reports will be published, tomorrow, September 23rd.
Meanwhile, I want to list the pros and cons as they have been listed on various websites. So here are some of them…….
The Proposed California Law, known as AB 482 (mendoza) that would restrict employer use of credit card reports as a background check for pre-employment screening purposes.
California Chamber of Commerce in what it lists as “Job Killer Bills,” had this to say–Expanded Employer Liability – Increases potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process.
Status: to Enrollment.
“AB 482 (Mendoza; D-Norwalk) Expanded Employer Liability. Increases potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process. Hearing June 29 in Senate Judiciary Committee.
The League of California Cities Website. ”AB 482 (Mendoza). Employment. Credit Reports. Prohibits an employer from using credit report information, for employment purposes, unless “substantially job related,” which could result in confusion, disagreement, and litigation over what is a “substantially job related” purpose.”
California Assembly Member and Author of the Proposed Bill, Tony Mendoza’s Website–AB 482 (Credit Check) - The bill would ban employers from using consumer credit reports in the hiring process.
From the Orange County Reigster–Top 20 Bd Bills Gov. Schwarzenegger Should Veto…”AB 482 (Mendoza) – Prohibits employers from considering an applicant’s credit history during the hiring process. (Interestingly, the U.S. military uses credit checks as one means to determine the trustworthiness of military personnel to hold secrets.)