California - AB22 (SIGNED INTO LAW 10/10/2011):

Signed by Gov. Brown, AB22 prohibits an employer or prospective employer from using a consumer credit report for employment purposes, unless the position of the person for whom the report is sought is any of the following:

  • A managerial position.
  • A position in the State Department of Justice.
  • A sworn peace officer or other law enforcement position.
  • A position for which the information contained in the report is required by law to be disclosed or obtained.
  • A position that involves regular access, for any purpose other than routine solicitation and processing credit card applications in a retail establishment, to the bank or credit card information, Social Security number, and date of birth of any one person.
  • A position in which the person, is, or would be, a named signatory on the bank or credit card account of the employer.
  • A position in which the person is or would be authorized, on behalf of the employer, to transfer money or enter into financial contracts.
  • A position that involves access to confidential or proprietary information, including trade secrets.
  • A position that involves regular access to cash totaling $10,000 or more of the employers, a customer, or client, during the workday.

This new law also requires that written notification be given to the employee or prospective employee identifying the specific basis for use of the report pursuant to these provisions.

California - AB1236 (SIGNED INTO LAW 10/09/2011):

Signed by Gov. Brown, AB1236, titled the Employment Acceleration Act of 2011, allows participating employers to voluntarily use the E-Verify system to verify the employees they hire are authorized to work in the United States. This new law also prohibits the State or any city, county, or special district from requiring that a private employer use the E-Verify system except when required by federal law or as a condition of receiving federal funds.