If you are job hunting in California, you may wonder if potential employers can check your credit report as part of the hiring process. While this is permitted in some states, California has strict laws governing credit checks by employers. California law requires employers to provide notice if they intend to check credit reports and if they plan to use the information in the report as the basis for employment decisions.
Generally, an employer may not consider a person’s credit report in making job decisions except for applicants for managerial positions, positions with the state Department of Justice, law enforcement positions, or positions where a credit report is legally required to be disclosed. At Blackstone Law, we fight for you if an employer violates your rights during the application process and makes a hiring decision based on your credit report.
When Are California Employers Allowed to Pull Your Credit?
Under California law, employers are only allowed to pull your credit report if you are applying for a job in certain industries, which may include the following:
- Banking
- Financial services
- Law enforcement
- Jobs that require access to personal information
If you are looking for a job in one of these industries, an employer can request your credit report as part of the application process. However, they must provide a written notice explaining that a credit check will be conducted, and they must obtain your written consent before pulling your credit.
Even if you are applying for a job in one of the industries requiring a credit check, California law limits how employers can use your credit history. Specifically, they cannot use more employment decisions based on their findings in your report unless the information is directly related to the job you are applying for. For instance, if you are applying for an accountant position, your credit report might be relevant because it can indicate your ability to manage finances. Alternatively, if you are applying for a job as a receptionist, your credit report is irrelevant, and the employer could not use it in a hiring decision.
Whether the credit check is necessary for the specific position will determine its legality. Credit checks can be disguised as discriminatory hiring practices. California civil code 1785.1 prevents most employers from using credit scores and credit histories to make hiring decisions.
What Are the Consent and Disclosure Requirements?
Employers are required to obtain your written consent before pulling your credit report. They must provide a document explaining that a credit check will be conducted and that you have the right to withhold consent. Additionally, your employer must provide you with a copy of the credit report they obtain, if you request it, and inform you of your right to dispute any false information in the report and provide you with information on how to do so.
If your employer fails to comply with disclosure and consent requirements, they may be subject to legal action. If you believe your employer violated your rights, consult an experienced employment lawyer at Blackstone Law.
Speak With the Leading Employment Lawyers at Blackstone Law
California employers are allowed to pull your credit in certain citations, but they cannot use your credit history against you unless it is directly related to the job you are seeking. If your rights have been violated based on your credit report or your credit report was pulled without consent, speak with the leading employment lawyers at Blackstone Law.
Our experienced legal team can evaluate your case and identify any potential violations. We tirelessly fight for the justice you deserve and work toward a resolution that protects your rights and interests. Schedule a complimentary consultation today by calling (310) 956-4054 or filling out our contact form.