California Labor Code Section 1024.5 prohibits employers from accessing and using consumer credit reports for employment purposes. Exceptions exist for certain financial institutions, and for employees who hold managerial positions, or jobs for which credit information is required by law. California Civil Code Section 1785.20.5 was also amended to require that before an employer seeks a credit report on an applicant or employee that the employer must give to the employee written notice of the basis under which they are seeking the report under Labor Code section 1024.5. This new became affective January 1, 2012.
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