Legislation to ban most employers from conducting credit checks on job applicants cleared the Assembly today.
Assembly Bill 22 cleared the lower house by a vote of 42-28, with no Republican support.
The bill was proposed by Assemblyman Tony Mendoza, D-Artesia, who said that credit reports can be inaccurate or muddied by layoffs or emergency situations. They do not truly reflect whether a person is trustworthy and hardworking, he said.
Other supporters said that using credit checks to eliminate potential employees is particularly egregious in a time of economic crisis when many people cannot afford their mortgages.
"Everybody needs an opportunity to get a job," Mendoza said.
Opponents argue that credit reports can provide valuable information about an applicant's responsibility, reliability and integrity. Credit reports can help employers reduce future litigation and loss, they say.
"In small business, every little bit counts," said Assemblyman Don Wagner, R-Irvine.
AB 22 would not apply if the job sought is involved in handling money, assets, or confidential information and the position is in a financial institution, is managerial, is for a sworn peace officer post, or is in the Department of Justice.
Former Republican Gov. Arnold Schwarzenegger vetoed similar legislation last year.
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