California Labor &
Employment Law Blog

Jun. 21 2010

Legislation Limiting Employer Use of Credit Reports Pending in California

Topics: Employee Hiring, Discipline & Termination, New Laws & Legislation

AB 482, which would restrict the use of credit reports for employment purposes, is pending before the California Legislature this session. If enacted in its current form, AB 482 would prohibit employers, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information is (1) substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information; and (2) the position of the person for whom the report is sought is a position in the state Department of Justice, a managerial position, that of a sworn peace officer or other law enforcement position, or a position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. This legislation would significantly curtail the ability of employers to obtain or use credit reports in the hiring and background check process. A hearing on the proposed legislation is scheduled for June 29 in the Senate Judiciary Committee. We will continue to monitor this legislation and post developments here.

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For over 20 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor

Robin Largent represents employers, including major food and retail companies, in all types of employment litigation: wrongful termination, retaliation, breach of contract, wage and hour (California Labor Code) and unfair competition. She also regularly counsels and advises California employers on issues of compliance with California and federal employment laws.
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