legal-lawEffective January 1, 2012, California will be the seventh state to pass law limiting employers from using credit reports for employment purposes. Assembly Bill 22 states that employers may request credit reports only if the applicant is being considered for one of the following:

  • A managerial position
  • A position in the state Department of Justice
  • A sworn peace officer or other law enforcement
  • A position for which the information contained in the reports is required by law to be disclosed or obtained
  • A position which the person can enter into a financial transaction on behalf of the company
  • A position that involves access to confidential or proprietary information
  • A position that involves regular access to employer, customer, or client cash totaling $10,000 or greater during the workday

Additionally the law states that California employers must disclose the following to the applicant before requesting their credit report:

  • Written disclosure that a credit report will be requested;
  • A check box allowing the applicant to request a copy of the credit report at no charge
  • The specific reason(s) for obtaining the report as provided in the statute (listed above)

As a valued added service to our California clients, Employers Choice Screening has prepared an Assembly Bill 22-compliant disclosure and authorization form. Please contact us for further details at cfarzad@ecoinc.us.

Employers Choice Screening Legislative Alerts are provided as a free service to clients, friends and subscribers ofEmployers Choice Screening, a division of Diversified Risk Management, Inc. The intent is to provide information of value to attorneys, human resource, security, and risk management professionals. The information contained in this e-mail alert is intended to provide useful information on the topics covered, but should not be construed as legal advice or a legal opinion. Your comments are appreciated.

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