Assemblyman Mendoza's New Credit Check Law Removes One More Hurdle for Unemployed

Assembly Bill 22, a bill authored by State Assemblyman Tony Mendoza, D-Artesia, that restricts the use of pre-employment credit report checks in the hiring process, has been signed into law by Gov. Jerry Brown.

“I couldn’t be more pleased with Governor Brown’s decision to sign AB 22,” Assemblymember Mendoza said. “This bill has the ability to put countless unemployed Californians back to work and will end the needless catch-22 that occurs when those seeking work to pay their bills cannot find it due to poor credit.”

This is Mendoza’s third attempt at similar legislation, as AB 482 (2010) and AB 943 (2009) were both vetoed by Gov. Arnold Schwarzenegger in years past.

Exceptions to the Law:

The law bans the use of pre-employment credit checks for many employers, but there are certain exceptions.

Exemptions include:

• any position with the State Department of Justice; 
• a sworn peace officer or other law enforcement position; 
• any position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. 
• Managers, named signatories, anyone with access to trade secrets, access to $10,000 or more in cash during the workday, and anyone who regularly works with information that can be used to commit identity theft are also exempted.

Supporters of this law believe that the barring of these credit check screenings by employers will help make the hiring process a bit easier for jobless individuals.

Unemployment Rate in Artesia and Cerritos

According to data provided by the Employment Development Department (EDD), the unemployment rate in Artesia and Cerritos was 9.2 percent and 7 percent, respectively during the month of August 2011. The unemployment rate in Los Angeles County as a whole during the same month was 12.5 percent.

Statistical breakdowns for September have not yet been released.