Governor Jerry Brown has recently signed legislation (A.B. 22) to block employers from using credit reports to evaluate employees or applicants. The new law prohibits California employers from using consumer credit reports to evaluate employees or applicants. Employer use of credit reports is banned unless the information is job related because the employee is in a position that has access to money, assets, or confidential information. Use of the reports also is allowed if the employee is seeking a managerial position, a position within the state Department of Justice, a law enforcement position, or a position for which the information in the credit report must be obtained by law.
In addition, the governor also signed S.B. 299, which requires California employers to continue to provide health insurance to employees who are on maternity leave and allows employers to recover the amounts paid for premiums from employees who fail to return to work after maternity leave for reasons that are not related to medical or family leave. The new laws become effective January 1, 2012.