California Employers No Longer Able to Review Credit... - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » California Employers No Longer Able to Review Credit Reports

California Employers No Longer Able to Review Credit Reports

Add to Favorites:
California Employers No Longer Able to Review Credit Reports

California is the most recent state to make amendments to existing laws under the Fair Credit Reporting Act to further restrict the ways in which credit reports can be utilized by employers to make decisions about who to hire.

Nat Lippert, a research analyst for Unite Here, spoke on the topic of employers using credit reports in hiring decisions. He said that it put prospective employees in a bind, since they could neither pay their bills, due to a lack of work, and could not get work, since they were behind in their bills, according to sfgate.com.

Other states, including Illinois, Hawaii, Washington, Connecticut, Maryland, and Oregon have also enacted similar laws.

Now with the new laws in place, as reported by inside privacy.com, California employers are only permitted to use credit reports for employees who currently work or are applying to be hired for a job in the following positions:

  • a managerial position;
  • a position in the State Department of Justice;
  • a sworn peace officer or law enforcement position;
  • a position for which the employer is required by law to consider credit history information;
  • a position that affords regular access to bank or credit card account information, Social Security numbers, or dates of birth, provided, however, that the access to this information does not merely involve routine solicitation and processing of credit card applications in a retail establishment;
  • a position where the individual is or will be a named as a signatory for the bank or credit card account of the employer, and/or will be authorized to transfer money, or will be authorized to enter into financial contracts on the employer’s behalf;
  • a position that affords access to confidential or proprietary information; or
  • a position that affords regular access during the work day to the employer’s, a customer’s, or a client’s cash totaling at least $10,000.

There are several other states throughout the nation that are considering taking similar measures. They include Ohio, Pennsylvania, Florida and New York.

Opponents include business and manufacturing groups and credit reporting agencies. They make the argument that an employment candidate’s credit report has the potential to shed light on whether they have a tendency to behave in a responsible and reliable manner.

Add to Favorites:

Related News:

Amex Partners with Venus Williams at the US Open

Posted: August 23, 2017

American Express will be at the US Open again this year, and they will be rolling out some new experiences for cardholders including games and photo ops, along with access to the Card Member Club and American Express Radio Live. Continue reading
More EMV Enabled Debit Cards, Less Fraud

Posted: August 22, 2017

Last year there was an upswing in the number of chip-enabled debit cards rolled out, according to the 2017 Debit Issuer Study by Pulse, with an estimated 80% of cards in the United States having been outfitted with EMV technology. While ... Continue reading
Fewer Millennials Paying Attention to Finances

Posted: August 21, 2017

In 2015 more than half of Millennials were thinking about how to turn their financial goals into a reality, but in 2016 that number dropped to 37%, according to Navy Federal's 2017 Millennials and Their Money study. They also found that ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit