Saturday, December 31, 2011

Starting tomorrow, most California employers cannot request your credit report

SAN DIEGO. On January 1, 2012, it becomes illegal in California for most employers to request a credit report on a prospective employee without the employee’s consent. Prior to that, a California employer could request a prospective employee’s credit report, as long as the employee had been previously notified of that action and given an opportunity to obtain a copy.

The Assembly Bill No. 22, amends Section 1785.20.5 of the California Civil Code and limits the employer’s right to request a credit report to the following situations when a prospective employee:

(1) is seeking a 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, or
(8) a position that involves regular access to $10,000 or more of cash.

If the above does not describe your situation, the employer may only request your credit report with your permission.