A controversial legislative bill limiting California employers’ ability to utilize consumer credit reports for relevant employment purposes passed the Assembly on March 22, 2011. The bill, AB 22, prohibits an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information falls under the following:
a) Job related
b) The position is in the State Department of Justice
c) A managerial position
d) The position of a sworn peace officer or other law enforcement position, or
e) A position for which the information is required to be disclosed or obtained by the employer
This bill raises concerns among employers primarily because credit reports provide employers the opportunity to confirm important information and evaluate an applicant’s personal credibility and responsibility. The question is, “Do credit reports accurately reflect an applicant’s credibility and responsibility?” As we see more state legislatures introduce bills concerning this topic that question is debated.
There are several states that prohibit credit checks. They include Hawaii, Illinois, Oregon, and Washington. States other than California that currently have proposed legislation on the topic include: Arizona, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maryland, Missouri, Nebraska, New Jersey, New Mexico, New York, Ohio, Pennsylvania, South Carolina and Vermont.
Permalink
This is absolutely great news! I had perfect credit for 20 years of my life then the economy took a turn for the worst and ruined my business, as a result, my credit suffered and have been unable to find employment due in large part because of these credit checks. I pray, and my family prays that this bill passes.