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California Credit Report Legislation

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California legislature is dangerously close to passing a law that changes the use of pre employment credit reports by employers. 

The current law allows for the usage if it is substantially job related.  Under the reason of substantially job related, the current reasons are as follows:

  • The position is a highly compensated or managerial one
  • The position is one in which there is access to customer or employee personal or financial information.
  • The position involves fiduciary responsibility or the handling or managing of money or requires travel.

The newly proposed law would eliminate the second two reasons, thus prohibiting an employer from pulling consumer credit reports for these types of positions.  We urge you to contact your state senator if you have business, employees or potential applicants in the State of California.  Below is a link to do so:

http://napbs.com/members_rep_letters.php

This was posted by Todd Moss on August 26, 2008
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