California Restricts Use of Consumer Credit Reports for Employment Purposes

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On October 9, 2011, California Governor Jerry Brown signed a bill that dramatically limits the circumstances under which an employer may use consumer credit information in connection with hiring and employment decisions in California. Assembly Bill 221 (“AB 22”) will become effective on January 1, 2012.

AB 22 strictly prohibits employers and prospective employers from using a consumer credit report for employment purposes, unless the position of the person for whom the report is sought meets any of the following criteria...

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Published In: Administrative Agency Updates, Finance & Banking Updates, Labor & Employment Updates, Privacy Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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