CREDIT CHECK - NEW IN 2012- AB 22

Credit Check
AB 22 prohibits employers and prospective employers, not including certain financial institutions, from obtaining and using consumer credit reports (credit information) about applicants or employees.
The prohibition does not apply to “managerial positions,” defined as those who qualify for the executive exemption from overtime. This exception reinforces the need to make the correct exempt/nonexempt classification at the time you decide to recruit for an open position.
The prohibition against obtaining and using credit reports also does not apply to the following:
 Law enforcement positions and positions for which the information is required by law
 Positions that involve regular access (other than in connection with routine solicitation and processing of credit card applications in a retail establishment) to bank or credit card information, Social Security numbers, and date of birth
 Positions in which the person is, or would be, a named signatory on the employer’s bank or credit card account, or authorized to transfer money or enter into financial contracts on behalf of the employer
 Positions that involve access to confidential or proprietary information, as defined
 Positions that involve regular access to cash totaling $10,000 or more of the employer, a customer, or client during the workday