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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