New Law: California Restricts Use of Credit Checks by Employers

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The practice of using pre-employment credit checks has come under attack for a variety of reasons. Governor Jerry Brown recently signed into law Assembly Bill 22 (AB 22) that restricts California employers from using consumer credit reports for employment purposes. This new law, which is effective on January 1, 2012, amends Section 1785.20.5 of the Civil Code and prohibits an employer or prospective employer — with the exception of certain financial institutions — from obtaining a consumer credit report for employment purposes unless the position of the person for whom the report is sought is any of the following...

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