California Law Prevents Employee Credit Checks
PRIVACY LAW—U.S.October 24, 2011
Earlier this month, California became the seventh state to enact legislation restricting employers from using consumer credit reports in making hiring and personnel decisions, reports the Hunton & Williams Privacy and Information Security Law Blog. Some exemptions exist within the new law, such as if the employment decision is managerial; within the Department of Justice or law enforcement, or involves regular access to cash during the workday. Written notice is required if an exemption applies. Employers using consumer credit reports in making employment decisions should be sure their policies comply not only with the new law in California but in the six other states with similar laws, the report states.