The bill prohibits most employers from using credit scores and credit history in making hiring decisions. California is the seventh state in the country to ban the practice of credit checks by most employers. The new law makes it illegal for most businesses to rely on credit checks during the hiring process.

Which states ban credit checks for employment?

As of last year, 11 states – including California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington – and the District of Columbia have enacted laws that restrict the use of credit reports in employment decisions.

Will I get hired if I have bad credit?

When you hear things like “a bad credit score can prevent you from getting a job,” it’s actually not true. That’s because employers don’t pull your actual credit scores like a lender might, says Griffin. An employer must inform the applicant that the credit check might be used as part of the employment decision.

Can a potential employer check your credit report?

Christine DiGangi is the former Deputy Managing Editor – Engageme… Read More In most of the country, a potential employer can review your credit report when evaluating you for a job you applied for, and it’s a very controversial practice, to say the least.

What to do if an employer does a credit check without your permission?

The Federal Trade Commission (FTC) enforces the FCRA. If an employer does a credit check without your permission, or turns you down for a job without sending you the notices required, you can contact the FTC at FTC.gov or call 1-877-FTC-HELP (1-877-382-4357).

How to protect your credit for a job?

Contact your State Department of Labor for information about how current laws apply to your location. Tripp Scott, labor and employment attorney for Catalina Avalos, supplies the following information on credit reports and tips for job seekers to protect themselves from credit checks by employers .

What to do if an employer rejects you because of your credit report?

If an employer intends to reject you for a job because of your credit report, the company must notify you and include a copy of the report it used to make the decision, according to the Fair Credit Reporting Act (FCRA). That way you can review the information and dispute it if it’s incorrect.