California has joined the ranks of a multitude of other states, including HI, IL, MD, OR, WA & CT, by banning the use of credit reports for pre-employment background checks.
Governor Brown signed AB22 into law and became effective, January 1st, 2012. This law says that employers may not utilize credit reports for pre-hire decisions, unless it specifically pertains to the position being filled. Some of the reasons California Employers may utilize credit reports are outlined below:
· A position in the state Department of Justice
· A managerial position
· A sworn peace officer or other law enforcement position
· 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 specified personal information for any purpose other than 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 employer’s bank or credit card account, or authorized to transfer money or enter into financial contracts on the employer’s behalf
· A position that involves access to confidential or proprietary information
· A position that involves regular access to $10,000 or more of cash.
If applicant’s fall under any of the above criteria, the new law states that the applicant must be told in writing that a credit report is being requested and the applicant must sign a written authorization request.
For more information pertaining to this new law, or for more information on background checks and drug testing, contact Employers Investigative Services or visit www.eischecks.com.