Effective January 1, 2012, California employers will be prohibited from obtaining consumer credit reports for purposes of evaluating an applicant for employment, reassignment, or retention without a valid reason. Credit reports can only be obtained if the person has or will have a position that is at a managerial level, involves access to confidential information, involves regular access to cash, etc. Failure to comply could result in applicants or employees filing lawsuits seeking damages which could include court costs, loss of wages, attorneys’ fees, and when applicable, pain and suffering. In addition, courts can award additional damages up to $5,000 for each violation and any other relief it deems necessary.
