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).
The state of Minnesota is once again requiring its big contractors to verify the legal right of their employees to work in the United States by using the E-Verify electronic employment eligibility verification system that checks information from new hires against federal databases of the Department of Homeland Security (DHS) and Social Security Administration (SSA), according to a report from Minnesota Public Radio. Already in effect, the new law requires private businesses providing more than $50,000 worth of services to the state to enroll in E-Verify and check the work status of new hires using the E-Verify system. Continue reading
North Carolina Governor Beverly Perdue has signed into law the requirement that cities, counties, and businesses in the state employing 25 workers or more use E-Verify, an internet-based system operated by the Department of Homeland Security (DHS) and the Social Security Administration (SSA) that allows participating employers to verify the employment eligibility of their newly hired employees. The law (House Bill 36) – “An Act To Require Counties, Cities, And Employers To Use The Federal E-Verify Program To Verify The Work Authorization Of Newly Hired Employees” – will be phased in for different employers from October 1, 2011, through July 1, 2013. Continue reading
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.
A case decided by the California Supreme Court on June 23, 2011 graphically demonstrates the difference between allegations of negligent hiring as opposed to “vicarious” liability where an employer has direct responsibility for the acts of an employee. Continue reading
A new law in Alabama signed by Republican Governor Robert Bentley would require employers to use the now-voluntary federal employment eligibility verification system known as E-Verify to ensure that newly hired employees are legally eligible to work in the United States and would also authorize the revocation of business licenses for companies that employ illegal workers. All Alabama employers, both public and private, must begin using E-Verify when hiring new employees no later than April 2012. Continue reading
A bill in California – AB 22 – sponsored by Assemblymember Tony Mendoza (D-56th District) that would ban the use of credit report background checks by employers during the hiring process has passed in the State Assembly with a vote of 45 to 29 and now heads to the Senate Labor and Industrial Relations Committee. Mendoza’s earlier attempts at similar legislation in the past – AB 482 (2010) and AB 943 (2009) – were both vetoed by former Governor Arnold Schwarzenegger. Continue reading
The New York State Senate has passed a bill – S5171B – sponsored by State Senator Charles J. Fuschillo, Jr. (R-Merrick) that would require all bus drivers to submit to criminal background checks in order to improve safety for bus passengers following several bus crashes caused by dangerous bus drivers with histories of criminal driving convictions. The legislation has been sent to the Assembly for consideration. Continue reading
A recent article from the HR Daily Advisor – ‘Which State Laws Make FCRA Just That Much Harder?’ – featured Attorney Lester Rosen, CEO of accredited background screening company Employment Screening Resources (ESR), who advised employers to follow state rules for the federal Fair Credit Reporting Act (FCRA) as part of the steps for FCRA compliance he offered at the Society for Human Resource Management (SHRM) Employment Law and Legislative Conference, held recently in Washington, DC. Continue reading
The State Senates of Louisiana and Pennsylvania have overwhelmingly passed legislation – Louisiana Senate Bill 66 and Pennsylvania Senate Bill 637 – that would require state contractors to use the government’s E-Verify electronic employment eligibility verification system to verify that the workers they hire are legally eligible to work in the United States. Both bills now head to the Houses in their respective states for consideration. Continue reading