AB 22 – what this means for California

September 12, 2011

pre-employment screening process. AB 22 (Mendoza) is currently moving through the 2nd house after making it out of the Senate Appropriations Committee on August 15th. While the bill provides exceptions in cases, it would largely prohibit a prospective employer from using consumer credit reports in the hiring process. Under existing state law, an employer may request a credit report for employment purposes so long as he or she provides prior written notice of the request to the person for whom the report is sought. Existing state law also requires that the written notice inform the person for whom the consumer credit report is sought that a report will be used and of the source of the report and contain space for the person to request a copy of the report. 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) a position in the state Department of Justice, (2) a managerial position, as defined, (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, as specified. Do you live in California? How do you think this could affect you as an employer, or as a job applicant?   Source for information on AB 22 – Around the Capitol ]]>

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