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.
California National Organization of Women “AB 482 (Mendoza) Ban the use of pre-employment credit checks. Support
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.)
2 replies on “The Law Restricting California Employers for Pre-Emloyment Credit Background Checks”
The ONLY issue important to the overwhelming majority of Americans is the “Jobs and Economy” issue. Despite all the banter and political noise, the ONLY quick fix that can be accomplished with the simple stroke of a presidential pen is HR3149: The Equal Employment for All Act. It simply allows highly qualified Americans the right to work by banning employment credit checks for most jobs. Without passage, extensions to unemployment insurance just delay an inevitable dead-end when benefits run out and any jobs created are out of reach for almost half of the entire U.S. workforce. The numbers as detailed in the following linked article don’t lie:
Truthout
http://www.truth-out.org/one-less-privacy-intrusion-bill-end-pre-employment-credit-checks63283
Against the overwhelming odds of vote buying via millions in PAC money from the big three credit bureaus, the U.S. Chamber of Commerce and 19 other business lobbying groups “we the people” with no money have moved the legislation forward to a hearing on Thursday at 10:00.
Legislative Hearing on H.R. 3149, the Equal Employment for All Act
http://financialservices.house.gov/Hearings/hearingDetails.aspx?NewsID=1355
[…] I have written about this bill, one of several controversial bills in a variety of states where civic groups and sympathetic legislators have proposed or passed bills on the grounds that the employment credit report is biased and prevents otherwise qualified employment candidates from finding jobs. One such article, which provides arguments from various groups on both sides of the issue was entitled, The Law Restricting Employers for Pre-Employment Credit Background Checks. […]