Corporate
Sep. 16, 2011
California joins states restricting employer use of credit reports
AB 22 not only limits use of credit reports, but also imposes notice and disclosure obligations on employers. By Rod M. Fliegel and Jennifer L. Mora of Littler Mendelson PC
On Sept. 8, the state Legislature sent AB 22 to Gov. Jerry Brown for his signature or veto. AB 22 adds a new provision to the California Labor Code and amends the state's Consumer Credit Reporting Agencies Act (CCRAA) (Civil Code Section 1785 et seq.) to substantially restrict the discretion that private and public sector employers have to use "consumer credit reports" for hiring and personnel decisions. Toget...
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