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Consumer

California Assembly Bans Using Credit Reports For Most Hiring

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SACRAMENTO (CBS / AP) — California lawmakers have voted to block employers from using consumer credit reports when they are deciding whether to hire workers for most jobs.

The state Assembly passed AB22 with the bare majority needed, sending it to the Senate.

If signed into law, the bill would stop the use of credit checks in hiring, except for managers, law enforcement, financial jobs and certain other positions that handle valuable items or information.

The bill’s author, Democratic Assemblyman Tony Mendoza of Artesia, said credit checks often are inaccurate and hurt minority and female job seekers. Opponents say they are a useful tool for employers assessing the integrity of job candidates.

Similar bills were approved the past three years but were vetoed by former Gov. Arnold Schwarzenegger.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)

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