New California Pre-Employment Credit Report Laws
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.
Online, January 4, 2012 (Newswire.com) - 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.
Employers Investigative Services is a nationwide provider of pre-employment background checks and drug testing. Their experience is known the world over for having the most accurate, complete and affordable criminal history, motor vehicle and credit reports.
Companies conducting pre-employment background checks on their new-hires have increased their margins and shown an increase in productivity. Consider all of these when choosing your background check company.