Schwarzenegger Torpedos California Assembly Bill to Eliminate Employment Credit Reports

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Thank you Governor Arnold for rejecting California Assembly Bill 943. This was the second time in two years that the governor vetoed an effort to eliminate the use of employment credit reports. See the governor’s rationale below.

“I am returning Assembly Bill 943 without my signature.

This bill would prohibit the use of consumer credit reports for employment purposes unless the information is either substantially job related, as defined, or required by law to be disclosed to or obtained by the user of the report.

This bill is similar to legislation I vetoed last year on the basis that California’s employers and businesses have inherent needs to obtain information about applicants for employment and existing law already provides protections for employees from improper use of credit reports.

As with last year’s bill, this measure would also significantly increase the exposure for potential litigation over the use of credit checks.

For these reasons, I am unable to sign this bill.”

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