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Follow on Google News | New California Law for Pre-Employment Credit ReportsCalifornia 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.
By: Kevin Johnson 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 http://www.eischecks.com/ # # # Nationwide provider of pre employment background checks, screening and drug testing. Simple, paperless, fast and affordable solutions for hiring professionals and private investigators. End
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