ATTENTION – ALL California employers

Effective January 1, 2012, employers in California – with the exception of certain financial institutions – will be prohibited from obtaining consumer credit reports to use in the hiring and promotion process after Governor Jerry Brown recently signed into law Assembly Bill 22 (AB 22) that restricts usage of consumer credit reports for employment purposes.

The following is a link to the bill that was signed into law:
Assembly Bill 22 (AB 22)

NOTICE TO OREGON EMPLOYERS OR EMPLOYERS HIRING OREGON RESIDENTS
New Legislation

The Governor of Oregon signed into law a bill that bans employers in the State of Oregon from (with a few exceptions) obtaining or using for employment purposes information contained in the credit history of an applicant for employment or an employee.

The bill would prevent employers from utilizing credit reports in employment including hiring, discharge, promotion, and compensation except in the following circumstances:

• Employers that are federally insured banks or credit unions;
• Employers that are required by state or federal law to use Individual credit history for employment purposes;
• The employment of a public safety officer, or
• Employers that can demonstrate that the information in a credit report is "substantially job-related" AND the employer's reasons for the use of such information are disclosed to the employee or prospective employee in writing.

(This is not legal advice – you should check with your own legal counsel).

TO ALL NY EMPLOYERS
Re: Criminal records.

The state of New York has passed an amendment to the General Business Law that essentially seems to require two new steps in the employment process to take effect in 2009. We strongly urge that you to check with your legal department for full details and the requirements of this new law. In essence, it appears that the following steps must be followed.

1. You must have posted in your office a copy of Article 23-A of the NY State Corrections Law and any regulations promulgated pursuant thereto relating to the licensure and employment of persons previously convicted of one of more criminal offenses.



2. If you obtain an investigative consumer report from a consumer reporting agency that contains criminal record information about a job applicant, you must provide that applicant with a copy of Article 23-A of the Corrections law (described above).

(This is not legal advice – you should check with your own legal counsel).

CREDIT REPORTS & WASHINGTON STATE RESIDENTS NEW LEGISLATION:

On April 18, 2007, Washington Governor Christine Gregoire signed into law a bill prohibiting employers from accessing a consumer report on an employee's or applicant's credit worthiness, credit standing, or credit capacity for employment purposes unless such information is substantially related to the individual's current or potential job or required by law. An employer also must provide to the employee or applicant in writing the reasons for using the consumer credit report. This "advance" notice provision would not apply to an employer investigation involving an employee "who the employer has reasonable cause to believe has engaged in specific activity that constitutes a violation of law." This change to Washington's fair credit reporting law goes into effect July 22, 2007.

FCRA Changes

FTC HAS POSTED NEW REGULATIONS REGARDING THE FAIR CREDIT REPORTING ACT AND THE OBLIGATIONS OF OUR CLIENTS (USERS). IT IS IMPORTANT THAT YOU REVIEW THESE REGULATIONS.

http://www.ftc.gov/os/2004/11/041119factaapph.pdf 

A Summary of Your Rights Under the Fair Credit Reporting Act