Robinson ♦ Thatcher, LLP

Many clients who consult with me regarding bankruptcy worry about how a potential employer will view a bankruptcy on their credit report. For those individuals, there is a tiny bit of good news – as of the New Year, California law prohibits an employer or prospective employer from using a credit report for employment purposes. There are, however, notable exceptions, briefly:

• managerial positions;
• positions with the Justice Department;
• law enforcement positions,
• a position for which the information contained in the report is required by some other law to be disclosed or obtained;
• a position which involves regular access to bank or credit card information, social security numbers, and dates of birth;
• a position involving making banking transactions and financial contracts for the employer;
• jobs which involve access to confidential or proprietary information; and
• a position that involves regular access to cash totaling ten thousand dollars or more of the employer, customer or client, such as a bank teller.

The complete text of the new law is available on California’s Legislation website.