This bill would prohibit an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information in the report is:

(1) substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, trade secrets, or other 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, 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.

The stated intent of the bill is to “lower barriers to employment to those individuals who have been impacted by the current economic crisis and are struggling to find work;” and “to afford flexibility to employers to utilize consumer credit reports in instances where such use is substantially related to the job duties of the position applied for.” However, practically speaking, the bill will likely increase exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process.  

Adds Chapter 3.6 (commencing with Section 1024.5) to Part 3 of Division 2 of the Labor Code.

To enrollment on 08/31/10.