Starting this year California employers will no longer be able to use those credit reports to judge a candidate.
"It prohibits most employers from running credit checks on applicants unless it is substantially related to their job," said Amber Yoo.
According to the new labor code employers can only use a consumer credit report if the person is applying for jobs like:
- A managerial position
- A position in the state Department of Justice
- A sworn peace officer or law enforcement position
- A position where the person regularly accesses certain confidential information including bank or credit card accounts and social security numbers
California joins Connecticut, Illinois, Hawaii, Oregon, Maryland and Washington that have similar laws.