Legislative Update - Senate Labor and Industrial Relations Committee



AB 22 (Mendoza): a bill which would ban most employers from conducting credit checks on job applicants.

The author argues 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.  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.



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.



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.  This bill also would exempt financial institutions already subject to existing privacy requirements under federal law.



This bill was passed with a vote of 5-1.



AB 947 (Solorio):
Existing law generally requires employers to secure the payment of workers' compensation, including medical treatment, for injuries incurred by their employees that arise out of, or in the course of, employment. Existing law generally prohibits aggregate disability payments for a single injury occurring on or after January 1, 2008, causing temporary disability from extending for more than 104 compensable weeks within a period of 5 years from the date of injury. Under existing law, if an employee suffers from specified injuries or conditions, aggregate disability payments for a single injury occurring on or after April 19, 2004, causing temporary disability are prohibited from extending for more than 240 compensable weeks within a period of 5 years from the date of injury. This bill would recast the provisions to include, with certain exceptions, an additional limit on the aggregate disability payments for a single injury causing temporary disability that occurs on or after January 1, 2012, of 104 compensable weeks within 5 years from the date of injury.



This bill was passed with a vote of 5-0.