With new restrictions on the use of credit report checks by employers for employment purposes in California set to take effect January 1, 2012, a safe hiring expert speaking on KCBS News Radio in San Francisco about the upcoming credit check regulations said the new law – California Assembly Bill 22 (AB 22) – is unnecessary and confusing. He further commented that the law essentially standardizes best practices for background checks that employers across the country should be following already. Continue reading
With the new year fast approaching, employers in California – and employers doing business in California – need to be aware of two new laws taking effect on January 1, 2012 that will change the way they conduct employment screening background checks in the state: California Assembly Bill 22 (CA AB 22), which relates the use of credit report checks of job applicants and current employees for employment purposes, and California Senate Bill 909 (CA SB 909), which relates to the “offshoring” of the Personally Identifiable Information (PII) of consumers who are the subjects of background checks. Continue reading
The California Association of Licensed Investigators (CALI) Legislative Committee will host a free webinar for CALI members on Tuesday, November 29, 2011 from 2:00 PM to 3:25 PM Pacific Time featuring Attorney at Law Lester Rosen, the founder and CEO of Employment Screening Resources (ESR) and CALI member. The webinar will focus on two new California laws taking effect January 1, 2012 – Assembly Bill 22 (AB 22) and Senate Bill 909 (SB 909) – that will impact background screening for employment purposes. (NOTE: An archived version of the webinar “New California Laws Impacting Background Checks in 2012″ is available to CALI members at: http://www.cali-pi.org/news/78277/Nov-29-Webinar-by-Les-Rosen.htm). Continue reading
A number of U.S. states have either passed, or are considering passing, laws regulating credit reports used by employers for employment purposes. Most recently, California Governor Jerry Brown signed Assembly Bill 22 into law that prohibits employers or prospective employers in California, with the exception of certain financial institutions, from obtaining consumer credit reports for employment purposes beginning on January 1, 2012. Here is a summary of the seven states – California, Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington – that currently have laws regulating credit report use by employers. Continue reading
According to a report from HuffingtonPost.com, a coalition of 25 civil rights and labor advocacy groups recently petitioned TransUnion – one of the largest credit-monitoring firms in the United States along with Equifax and Experian and the only privately-held company of the so-called ‘Big Three’ – to stop making credit reports available and selling consumer credit information to employers to use for credit checks of job applicants during the hiring process. Continue reading
Effective January 1, 2012, employers or prospective employers in California – with the exception of certain financial institutions – will be prohibited from obtaining consumer credit reports to use in the hiring and promotion process after Governor Jerry Brown recently signed into law Assembly Bill 22 (AB 22) that restricts usage of consumer credit reports for employment purposes. California now joins Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington as U.S. states that currently limit the use of credit checks by employers. To read AB 22, visit: http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/ab_22_bill_20110920_enrolled.pdf. Continue reading
Over the weekend, California Governor Jerry Brown signed two Assembly Bills – ‘AB 22’ and ‘AB 1236’ – that will impact the way employers in the state conduct credit report checks on job applicants and use the federal E-Verify employment eligibility verification system to check the work authorization status of newly hired employees. AB 22 prohibits most employers or prospective employers from obtaining consumer credit reports for employment purposes while AB 1236, the Employment Acceleration Act of 2011, prevents state and local governments from requiring California businesses to use E-Verify to check if newly hired workers are legally eligible to work in the United States. The new laws take effect January 1, 2012. Continue reading
The final version of California Assembly Bill No. 22 (AB 22) that limits credit checks of job applicants by most employers is headed to Governor Jerry Brown’s office for his signature. The bill – which many believe will be signed into law by the Governor – would prohibit most employers or prospective employers, with the exception of certain financial institutions, from obtaining consumer credit reports for employment purposes. If passed, California would join Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington as the U.S. states that currently restrict the use of credit checks by most employers for employment decisions (Update: Governor Brown Signs Two Bills Impacting Use of Credit Reports and E-Verify by Employers in California).
Effective October 1, 2011, a new law in Connecticut – Senate Bill No. 361 (S.B. 361) – signed by Governor Dannel Malloy will prohibit certain employers from using credit reports in making hiring and employment decisions regarding existing employees or job applicants. The law applies to all employers in Connecticut with at least one employee. Connecticut is one of six U.S. states – joining Hawaii, Illinois, Maryland, Oregon, and Washington – that currently prohibit the use of credit history in employment decisions.
What are the practical and legal considerations for employers that use criminal records and credit reports for applicant selection? This is the fifth and final installment of the Employment Screening Resources (ESR) Background Check Trends of 2011 Review features the number two trend, using criminal records, and the number one top ranked background check trend of the year, the use of job applicant credit reports. To view previous installments of the 2011 ESR Background Check Trends Review, visit Part 1, Part 2, Part 3, and Part 4.
- Number 2 ESR Background Check Trend for 2011: Questions about Criminal Records of Job Applicants Become More Difficult for Employers to Ask.
- Number 1 ESR Background Check Trend for 2011: Controversy over Whether Employers Using Credit Reports for Employment Screening is Discriminatory Increases.