The Governor of California has signed a bill recently that prevents some employers in the state from using credit report information to make decisions about hiring and promotions. The new law bloomed from a bill that was sponsored by a member of the Democratic State Assembly, Tony Mendoza that received a 21-17 vote.
Those who opposed the bill argued that the restrictions would hurt hiring while supporters pointed to the fact that a poor credit history doesn’t mean a lack of trustworthiness as an employee. They claimed it was a job killer for many Californians citing recent hearings from the Employment Opportunity Commission. The job application process was detrimental to citizens that are unable to gain access to credit cards and other loans.
Many low income household rely solely on cash and prepaid debit cards and have little to no access to establishing any kind of credit history. It is unfair to this minority when it comes to seeking employment.
Although this new law is a breath of fresh air for many unemployed Californians searching for a job, it does not completely eliminate the credit report from being included in some circumstances.
To learn more about the new law click here to visit the SFGate.
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