Restricting Credit Report Use For Employment Purposes

Law360, New York (October 19, 2011, 3:11 PM EDT) -- On Oct. 10, 2011, the Office of California Governor Jerry Brown announced that Governor Brown had signed AB 22, legislation that adds a new provision to the California Labor Code and amends the state's Consumer Credit Reporting Agencies Act (CCRAA)[1] to restrict the discretion that private and public sector employers have to use "consumer credit reports"[2] for hiring and personnel decisions. Together, the new laws, which take effect on Jan. 1, 2012, limit when employers lawfully can use consumer credit reports and impose notice and disclosure obligations on employers who intend to do so.

AB 22 is similar to the laws in...

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