AB 22 – Restrictions On Consumer Credit Reports

Many employers routinely use consumer credit checks when making personnel and hiring decisions. Both the California Consumer Credit Reporting Agencies Act (“CCRAA”) and its federal counterpart, the Fair Credit Reporting Act (“FCRA’), regulate how employers may use this information. However, with the passage of AB 22, the California State Legislature has amended California’s Consumer Credit Reporting Agencies Act (“CCRAA”) and added a new section to California’s Labor Code, placing additional restrictions on an employer’s use of consumer credit reports. To learn more about this new law click here and read our Newsletter.