Month: December 2011

A reminder to all employers that there will be modifications to Californian Employment Laws.  The new laws go into effect the first of the year.

 

Corra Group urges all California employers that before conducting background checks for employment screening purposes, please red the new laws very carefully.   This is especially true for California employers considering employment credit reports as background checks.

 

 

CALIFORNIA LEGISLATIVE UPDATES   NEW LAWS EFFECTIVE 01/01/2012

 

 

LIMITATIONS ON CALIFORNIA EMPLOYERS REGARDING CREDIT REPORTS

 

Bill AB 22 prohibits an employer or prospective employer from using a consumer credit report for employment purposes, unless the position of the person for whom the report is sought is any of the following:

 

A managerial position

A position in the state Department of Justice   A position as a sworn peace officer or other law enforcement job   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 the bank or credit card information, social security number, and date of birth of any one person other than for the routine solicitation and processing of credit card applications in a retail establishment   A position in which the person, is, or would be, a named signatory on the bank or credit card account of the employer   A position in which the person is or would be authorized, on behalf of the employer, to transfer money or enter into financial contracts   A position that involves access to confidential or proprietary information, including trade secrets   A position that involves regular access to cash totaling $10,000 or more during the workday

 

This new law also requires that prior written notification be given to the employee or prospective employee identifying the specific basis for use of the report pursuant to these provisions.

Corra Group recommends incorporating the reason for ordering a credit report into the release form signed by an applicant (a sample release is available upon request for your convenience). Should the reason for ordering a credit report vary on a case by case basis, a separate notification would appear more appropriate.

 

EMPLOYERS MUST TELL APPLICANTS WHERE TO FIND INFORMATION ABOUT THE CONSUMER REPORTING AGENCY S PRIVACY PRACTICES

 

Under CA Civil Code Section 1786.16 (a) (2) (B) (vi), the release signed by an applicant should notify a consumer of the Internet Web site address of the Consumer Reporting Agency or, if the agency has no Internet Web site address, the telephone number of the agency, where the consumer may find information about the investigative reporting agency s privacy practices, including whether the consumer s personal information will be sent outside the United States or its territories.

 

California Civil Code Section 1786.20 (d) (1) states that a CRA must post on its Internet web site a statement entitled  Personal Information

Disclosure: United States or Overseas  that indicates whether the personal information will be transferred to third parties outside the US or its territories. There must be a separate section that includes the name, mailing address, email address and telephone number of the CRA representatives who can assist a consumer with additional information regarding the investigative CRA s privacy practices or policies in the event of a compromise of his or her information.

 

CALIFORNIA LEGISLATIVE UPDATES   NEW LAWS EFFECTIVE 01/01/2012

 

 

LIMITATIONS ON CALIFORNIA EMPLOYERS REGARDING CREDIT REPORTS

 

Bill AB 22 prohibits an employer or prospective employer from using a consumer credit report for employment purposes, unless the position of the person for whom the report is sought is any of the following:

 

A managerial position

A position in the state Department of Justice   A position as a sworn peace officer or other law enforcement job   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 the bank or credit card information, social security number, and date of birth of any one person other than for the routine solicitation and processing of credit card applications in a retail establishment   A position in which the person, is, or would be, a named signatory on the bank or credit card account of the employer   A position in which the person is or would be authorized, on behalf of the employer, to transfer money or enter into financial contracts   A position that involves access to confidential or proprietary information, including trade secrets   A position that involves regular access to cash totaling $10,000 or more during the workday

 

This new law also requires that prior written notification be given to the employee or prospective employee identifying the specific basis for use of the report pursuant to these provisions.

 

Corra Group recommends incorporating the reason for ordering a credit report into the release form signed by an applicant (a sample release is available upon request for your convenience). Should the reason for ordering a credit report vary on a case by case basis, a separate notification would appear more appropriate.

 

EMPLOYERS MUST TELL APPLICANTS WHERE TO FIND INFORMATION ABOUT THE CONSUMER REPORTING AGENCY S PRIVACY PRACTICES

 

Under CA Civil Code Section 1786.16 (a) (2) (B) (vi), the release signed by an applicant should notify a consumer of the Internet Web site address of the Consumer Reporting Agency or, if the agency has no Internet Web site address, the telephone number of the agency, where the consumer may find information about the investigative reporting agency s privacy practices, including whether the consumer s personal information will be sent outside the United States or its territories.

 

California Civil Code Section 1786.20 (d) (1) states that a CRA must post on its Internet web site a statement entitled  Personal Information

Disclosure: United States or Overseas  that indicates whether the personal information will be transferred to third parties outside the US or its territories. There must be a separate section that includes the name, mailing address, email address and telephone number of the CRA representatives who can assist a consumer with additional information regarding the investigative CRA s privacy practices or policies in the event of a compromise of his or her information.