8/26/2008 California Employers Beware: Right to Review Credit Reports Threatened


California Assembly Bill 2918 which seeks to limit state employers’ ability to review credit reports for employment background screening purposes has been described as “dangerously close to becoming a critical issue”.

According to the National Association of Professional Background Screeners (NAPBS) “This bill would prohibit the user of a consumer credit report, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information is (1) substantially job related, meaning that the information in the consumer credit report relates to the position for which the person who is the subject of the report is being evaluated because the position is a highly compensated or managerial one , or (2) required by law to be disclosed to or obtained by the user of the report.

“The bill as introduced did not create a problem, however the amendments did. The following is the language that was taken out of the bill:

  • The position is one in which there is access to customer or employee personal or financial information.
  • The position involves fiduciary responsibility or the handling or managing of money or requires travel. “

employeescreenIQ recommends that all California employers who are concerned about this bill contact their state representatives immediately.

View California AB2918 in its entirety