As Governor Arnold Schwarzenegger winds down his final year in office, he must act on about 770 bills before a September 30th deadline or they will become law automatically. One of the bills is California AB 482, which is a bill intended to ban employers from using credit reports to deny employment, with some exceptions.
AB 482 would create unreasonable limitations on this use of information that is critical in a thorough background screening. In fact, the bill could have the unintended consequence of increasing business losses, which could negatively impact the number of overall jobs in California. Additionally, AB 482 seems to be based on an incorrect assumption that high error rates exist in credit reporting and that employers overuse the reports instead of using credit reports when relevant in the hiring process.
To read more about the bill, click here. The good news is that the governor vetoed similar legislation last year, and the California Chamber of Commerce has targeted AB 482 as a “job killer” bill. We will keep you posted on the status of the bill as it is reviewed.
Questions? Contact Corporate Screening Support at 800-229-8606 and select option 3, or contact your Account Representative.