California Governor Jerry Brown has signed into law Assembly Bill 22, which restricts how employers may conduct employment credit checks on their job applicants. A similar bill was put before former Governor Arnold Schwarzenegger who vetoed it. Now Brown has signed off his approval.
Proponents of the law have claimed that the economic downturn has created adverse situations for many job applicants and they are being penalized for the poor economic conditions. Other proponents claim that since ethnic minorities typically have diminished credit scores, there are elements of discrimination involved.
Here is the gist of the new law restricting the employment credit reports……
Effective January 1, 2012, Employers in California may only use a consumer credit reports for employment purposes if the report is sought for one of the following:
- A managerial position;
A position in the state Department of Justice; - A sworn peace officer or other law enforcement;
- A position for which the information contained in the report is required by law to be disclosed or obtained;
- A position that involves regular access to confidential information such as credit card account information, Social security number, or Date of birth;
- A position which the person can enter into financial transactions on behalf of the company;
- A position that involves access to confidential or proprietary information; or
- A position that involves regular access to cash totaling ten thousand dollars ($10,000) or more of the employer, a customer, or client, during the workday.
