California may do away with pre-employment credit checks
May 25, 2011 Matt Roesly
California employers may soon no longer be able to pull credit checks when it comes to pre-employment screening processes thanks to a bill that recently cleared the state Assembly. The state already attempted to pass similar legislature in both 2009 and 2010, but both were vetoed by former Governor Arnold Schwarzenegger. Those in support of the bill claim that a person's credit history does not reflect his or her character, The Central Valley Business Times reported. "A credit report is not a good indicator of a person's trustworthiness or work ethic," said Assemblyman Tony Mendoza, the source noted. "Consider the condition of the economy and the negative effect these circumstances can have on a person's credit - a credit report is an unfair lens through which to view job applicants," Mendoza added. One exemption would apply to managerial positions for which an employee would be responsible for money, assets or confidential information. During the hiring process, most employers conduct a slew of pre-employment background checks on a candidate. These can range from a look into their criminal record to education, work history and even credit checks in many states.