Making California the seventh state in the country to enact such a law, Gov. Jerry Brown signed Assembly Bill 22 on October 9, 2011. As reported here in a post dated August 18, 2011, this law bars most employers (except certain financial institutions) from using pre-employment credit checks in the hiring process. It remains to be seen if Occupy Sacramento or Occupy Wall Street protesters will decry the exemption in this law as yet another example of government showing undue favoritism to the financial sector. Either way, prudent employers who wish to perform or commission credit checks of employees or job applicants should consult legal counsel so as to avoid costly lawsuits.
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The Labor & Employment Group is dedicated to providing up-to-date, useful information to allow employers and human resources professionals to react to rapidly evolving case law, statutes, and regulations that control the California workplace. This blog’s objective is to serve as a forum to discuss labor and employment topics, issues and legal news.