Well, for us, not much because the language is vague enough, and the justification for the use of the report easy enough so that those who presently use credit reports in the employment context can easily justify their continued use.
Also, like any law of this type, it is wholly subjective, and there is not really a “thou shalt not.” Only a “thou shalt be sure that the use is compliant, or justified,” so I am not really worried. About 1/3rd of our clients opt not to use them, and even in that context, we can still provide the ancillary benefits from pulling that report, (the ID verifiers, etc.) but not provide the actual meat of the credit information. We do that a lot at present for those who want the benefit of the report, but not the payment history, and that is highly compliant, even with AB 22 proposals.
Essentially the gist of the law is not to disqualify candidacy because of the PAYMENT HISTORY and if you don’t send that with the report, you are fine, but the value of the ancillaries in the report can still be included, as long as a decision is not made on payment history.
See text below. (The kicker is in paragraph 1, last part “confidential information”. Isn’t most company information “confidential” these days?; and in 2A :”managerial position” – that one is a no brainer.)
1024.5. (a) An employer shall not use a consumer credit report, as defined in subdivision (c) of Section 1785.3 of the Civil Code, for employment purposes unless the following criteria are satisfied:
(1) The information contained in the report is substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information.
(2) The position of the person for whom the report is sought is any of the following:
(A) A managerial position.
(B) A position in the state Department of Justice.
(C) That of a sworn peace officer or other law enforcement position.
(D) A position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer.
(b) This section does not apply to a person or business subject to Sections 6801 to 6809, inclusive, of Title 15 of the United States Code and state and federal statutes or regulations implementing those sections if the person or business is subject to compliance
oversight by a state or federal regulatory agency with respect to those laws.
(c) For purposes of this section, “managerial position” means a position held by a person who has authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or
responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection with the foregoing the exercise of this authority is not of a merely routine or clerical nature, but requires the use of independent judgment.