Obtaining Applicant and Employee Credit Report

Both federal and state laws restrict the use of credit information in the hiring process.¹ In the employment context, a consumer credit report is any written, oral or other communication of any information by a consumer credit reporting agency (CRA) bearing on an individual’s credit worthiness, credit standing or credit capacity, which is used as a factor in evaluating an applicant for employment, promotion, reassignment or retention.²

Exclamation content: Under California law, employers and prospective employers (not including certain financial institutions) are generally prohibited from using a consumer credit report for employment purposes.³