EMPLOYERS RUNNING A BACKGROUND CHECK WITHOUT YOUR CONSENT OR EXCEEDING THE SCOPE OF YOUR PERMISSION

In California, under the Investigative Consumer Reporting Agencies Act, an employer must receive the employee’s permission to provide the applicant or employee written notice that:

1.    A consumer credit report will be used.
2.    Inform the applicant or employee of the name of the reporting agency that will be retrieving the                  information.
3.    The applicant or employee can receive a copy of the report and if a copy of the report is                            requested, it must be provided free of any charge.

Only certain types of jobs allow a (potential) Employer to seek a background report on the job applicant:

1.    A management position.
2.    Government law enforcement jobs.
3.    A position for which it is required by law that it be obtained.
4.    Someone that has access to banking, personal data, or other similar information.

What the Credit Report cannot contain:

1.    Bankruptcies over 10 years old.
2.    Lawsuits and judgments over 7 years old.
3.    Unlawful detainers (evictions).
4.    Paid tax liens over 7 years old.
5.    Account(s) placed for collections more than 7 years old.
6.    Arrests or convictions if more than 7 years old (if less than 7 years old, it should
           not be listed if arrest did not result in a conviction, and if a conviction was pardoned,
           they should not have to be disclosed).

If the employer takes an adverse action against you (e.g. hires or promotes someone else, demotes or transfers you, etc.) based upon the credit report, then the employer must provide you with a copy of the report, along with an explanation of your rights.  The victim of the above may be entitled to actual damages, or if a class action is brought, $10,000.

Have you been treated in accordance with the law?

The issue of employers using background and credit reports to evaluate employment candidates is complicated.  If you believe that you have not been treated in accordance with California law, please call Steven L. Miller a Professional Law Corporation at 855-216-9303 to discuss your matter on a confidential basis or complete the questionnaire box on the home page of this website.