Late last week, Governor Arnold Schwarzenegger vetoed California AB 482, a bill that was intended to ban employers from using credit reports to deny employment, with some exceptions.
This bill would have prohibited an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information in the report was substantially job-related.
“This bill is similar to legislation I have vetoed for the last two years 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,” said the Governor. “As with the last two bills, this measure would also significantly increase the exposure for potential litigation over the use of credit checks.”
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