October 3, 2011
California Assembly Bill No. 22 (AB 22), which limits credit checks of job applicants by most employers, is on Governor Jerry Brown’s desk for his signature. If passed, California would join Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington in restricting the use of credit checks by most employers for employment decisions.
Though previous attempts at similar legislation were vetoed by former Governor Arnold Schwarzenegger, many believe this legislation will pass.
If signed by Governor Brown, this bill would prohibit an employer or prospective employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the position of the person for whom the report is sought is:
*1. position in the state Department of Justice;
*2. a managerial position;
*3. that of a sworn peace officer or other law enforcement position;
*4. a position for which the information contained in the report is required by law to be disclosed or obtained;
*5. 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;
*6. 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;
*7. a position that involves access to confidential or proprietary information, as specified; or
*8. a position that involves regular access to $10,000 or more of cash.
Not only does AB 22 require written notice informing the person for whom a consumer credit report is sought for employment purposes, but it also requires the person be informed of the specific reason for obtaining the report.