News

AB 22 takes effect for 2012

Last year, the Governor signed AB 22 into law, a measure that would prohibit employers from routinely running credit checks on job applicants. The measure went into effect at the beginning of the year.
 

Joining the ranks of Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington, California now limits an employer’s ability to use credit checks in the screening process. There are a few exceptions to this law for employees that would qualify as one of the following:

• A managerial position;
• A position in the state Department of Justice;
• A sworn peace officer or other law enforcement position;
• A position for which the information contained in the report is required by law to be disclosed or obtained;
• A position that involves regular access to specified personal information for any purpose other than the routine solicitation and processing of credit card applications in a retail establishment;
• A position in which the person is or would be a named signatory on the employer’s bank or credit card account, or authorized to transfer money or enter into financial contracts on the employer’s behalf;
• A position that involves access to confidential or proprietary information; or
• A position that involves regular access to $10,000 or more of cash.
 

This ties the hands of employers who may be seeking objective information regarding an individual’s past behavior or character as an indicator of their likely future behavior. With 47% of employers surveyed in a 2010 study by the Society for Human Resource Management conducting credit checks on candidates selected for hire this will no doubt create an issue for many employers in the coming year.
 

The Brea Chamber of Commerce is committed to keeping members informed and advocating on behalf of business interests in our region. Let your state legislative representative know how you feel on this issue. Together we can build a strong business community.