Now that the new year is upon us, it is important for employers to be aware of the numerous new California laws in the employment area that will impact their operations. Unless otherwise noted, the laws listed below are effective as of January 1, 2012.
Under California Civil Code Section 1785.20.5 and Chapter 3.6 of the Labor Code, employers and prospective employers are now prohibited from obtaining or using consumer credit reports about applicants or employees for employment purposes. There are certain limited statutory exceptions for managerial positions and other specifically enumerated positions, including certain law enforcement positions, positions that involve regular access to bank, credit card, social security and other private information, positions that involve access to $10,000 or more in cash, positions in which the employee would have financial authority or be a signatory of the employer, and positions that involve access to certain confidential or proprietary information....
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