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California jumps on credit check removal bandwagon

Posted on October 12th, 2011 Read time: 1 minutes

HR administration is typically involved in the hiring process at most businesses. HR staff must be up-to-date on current background check, interview and hiring policies to ensure all prospective workers are afforded equal opportunities to land jobs.

Thus far, six states have banned credit checks as part of the hiring and promotion process, and according to TLNT, California recently became the seventh.

Governor Jerry Brown passed legislation AB 22 this week, which will prohibit employers from using credit reports to make employment decisions. California joins Maryland, Oregon, Hawaii, Illinois, Washington and Connecticut as states that have abolished the requirement.

"The law lifts the barriers that prospective employees will have to go through to get a job," said Assemblyman Tony Mendoza, as quoted by the Sacramento Bee. "Now they will be able to find jobs without the pressure of credit checks."

HR professional Jeff Dunn adds that the new law will benefit hiring officers because credit checks are costly and typically slow down the process. There's now "one less hurdle toward hiring a candidate," he told the media outlet.

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