EMPLOYMENT LAW: State Senate Passes New Law Preventing Use of Credit Report in Hiring

September 9, 2011

Sacramento - The California State Senate has passed a law preventing employers from using information taken from credit reports when considering job applicants, reports said.

Reports said the new law will apply to all job applicants except when hiring for managers, law enforcers or financial –related jobs.

It is common practice among employers to conduct background checks on job applicants which include information such police records and credit reports, among others

The new measure is now taken to the Assembly for final approval.