California has become the seventh state to prohibit credit checks in making employment decisions with legislation governor signed into law.
With the signing of A.B. 22, California joins Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington state in barring credit checks of prospective employees, according to the Denver-based National Conference of State Legislatures. To date, 58 bills in 28 states and the District of Columbia were introduced or pending in the 2011 legislative session, according to NCSL.
Certain jobs exempt
Under California’s law, which is effective Jan. 1, 2012, employers can use consumer credit reports for employment purposes only for the following:
– a managerial position;
– a position in the state Department of Justice;
– a law enforcement officer;
– a position for which the credit report is required by law;
– a job that involves regular access to a retail establishment’s credit card applications;
– a post in which the person would be a named signatory on a bank or credit card account;
– jobs involving access to confidential information;
– and one that involves regular access to cash totaling $10,000 or more.