AB 22, which restricts employers from using credit reports for employment decisions, has been signed into law by Governor Jerry Brown. This law goes into effect on January 1, 2012. However there are exceptions that allow employers, under certain situations, to continue to use credit reports.
The exceptions are the following:
- A Managerial Position
- A position in the state Department of Justice
- Law enforcement including sworn peace officer
- A position which requires the information contained in the report be disclosed by law
- A position requiring regular access to (other than routine solicitation and processing of credit card applications in a retail establishment)
- A) Bank or credit account information
- B) Social Security Number
- C) Date of birth
- A position that involves access to certain specific confidential information including formulas, trade secrets
- A position that has regular access to cash of $10,000 or more of the client, customer or employer
- A person that is named on the employers credit card account.
- A person allowed to transfer money or enter into contracts on behalf of the company.
Employers must be sure that any background screening program they undertake is compliant with state and federal laws. This includes credit reporting, disclosures, adverse decisions and time limitations on criminal convictions. ARS helps organizations maintain strict compliance with the FCRA and applicable state laws.