Proposed Law Threatens Use of Employment Credit Reports
August 26, 2008
California Assembly Bill 2918 which seeks to limit state employer’ ability to review credit reports for employment 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 use of a consumer credit report, with the exception of certain financial institutions, from containing 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 original bill didn’t seem to present a problem until the following points were removed:
- The position is one where there is access customer or employee personal or financial information
- The position involves fiduciary responsibility or handling or managing of money or requires travel
BTW, anyone want to define what “highly compensated” means? It seems to me that is both vague and open to much interpretation.
Anyway, we recommend that all California employers who are concerned about this proposed legislation contact their state representatives immediately before its too late.