Chapter 3.6. Employer Use Of Consumer Credit Reports of California Labor Code >> Division 2. >> Part 3. >> Chapter 3.6.
(a) An employer or prospective employer shall not use a
consumer credit report for employment purposes unless the position of
the person for whom the report is sought is any of the following:
(1) A managerial position.
(2) A position in the state Department of Justice.
(3) That of a sworn peace officer or other law enforcement
(4) A position for which the information contained in the report
is required by law to be disclosed or obtained.
(5) A position that involves regular access, for any purpose other
than the routine solicitation and processing of credit card
applications in a retail establishment, to all of the following types
of information of any one person:
(A) Bank or credit card account information.
(B) Social security number.
(C) Date of birth.
(6) A position in which the person is, or would be, any of the
(A) A named signatory on the bank or credit card account of the
(B) Authorized to transfer money on behalf of the employer.
(C) Authorized to enter into financial contracts on behalf of the
(7) A position that involves access to confidential or proprietary
information, including a formula, pattern, compilation, program,
device, method, technique, process or trade secret that (i) derives
independent economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper
means by, other persons who may obtain economic value from the
disclosure or use of the information, and (ii) is the subject of an
effort that is reasonable under the circumstances to maintain secrecy
of the information.
(8) A position that involves regular access to cash totaling ten
thousand dollars ($10,000) or more of the employer, a customer, or
client, during the workday.
(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
(c) The following definitions apply to this section:
(1) "Consumer credit report" has the same meaning as defined in
subdivision (c) of Section 1785.3 of the Civil Code, but does not
include a report that (A) verifies income or employment, and (B) does
not include credit-related information, such as credit history,
credit score, or credit record.
(2) "Managerial position" means an employee covered by the
executive exemption set forth in subparagraph (1) of paragraph (A) of
Section 1 of Wage Order 4 of the Industrial Welfare Commission (8
Cal. Code Regs. 11040).
An employer may not discharge an employee or in any manner
discriminate, retaliate, or take any adverse action against an
employee because the employee updates or attempts to update his or
her personal information based on a lawful change of name, social
security number, or federal employment authorization document. An
employer's compliance with this section shall not serve as the basis
for a claim of discrimination, including any disparate treatment