Limits on employer use of consumer credit reports
Lab. Code 1024.5
Employees · Credit reporting
Bars employers from using consumer credit reports for employment decisions except for listed positions, such as managerial jobs, law enforcement, positions with access to large sums or sensitive financial data, and jobs where the law requires the check. Employers using a report must give advance written notice.
- Where
- California
- Citation
- Cal. Lab. Code 1024.5; Cal. Civ. Code 1785.20.5
- Status
- In force
- In force since
- 2012-01-01
- Enforced by
- Labor Commissioner; courts
- People can sue
- No
- Penalties
- Not stated in the section read.
- Applies to
- Employers and prospective employers (financial institutions subject to certain federal and state laws are exempt)
What a privacy notice must say
- Give the applicant or employee written notice before requesting a credit report, stating the permitted reason.Cal. Civ. Code 1785.20.5
Practices it requires
- Do not use a consumer credit report for employment purposes unless the position falls in a listed category.Cal. Lab. Code 1024.5(a)
Sources
Checked against these sources on 2026-09-25 by research agent (Claude), primary sources.
Unverified: Effective date (Jan. 1, 2012, AB 22) inferred from 'Added by Stats. 2011, Ch. 724'. | Notice content under 1785.20.5 not read in full.
Research reference, not legal advice.