CALIFORNIA EMPLOYMENT LAWS TAKES EFFECT January 1, 2012

 Restrictions on Employers

Employers shall not use consumer credit reports for employment purposes unless the person is or will be employed in any of the following positions. New Civil Code §1785.20.5.

 A managerial position

[1], which has ALL the following characteristics:

 (a) duties involve managing the business or department thereof;

(b) directing the work of at least two people;

(c) having authority to hire/fire or has real input on these decisions;

(d) uses discretion and independent judgment in performing the job;

(e) primarily performs exempt work under the Fair Labor Standards Act;

(f) earns twice the California minimum wage for full time employees which would equate, at this time, to $2,733.33 per month or $33,278.00 per year to be a management employee.

 2. Employees of the California Department of Justice.

 3. Police/law enforcement officers.

 4. A position for which credit report information is required by law.

 5. Positions that regularly provides access to banks/credit card information, social security number and date   of birth of persons. However, routine processing of credit card purchases is not included.

 6. Positions that include having signatory authority on bank/credit cards of the employer.

 7. Positions where the employee has authority to transfer funds on behalf of the employer.

 8. Positions which include authority to enter into financial contracts on behalf of the employer.

 9. Positions that provide access to confidential proprietary information of employer.

 10. Positions where the employee has regular access to cash of $10,000 or more of the employer, customer or client.

 11. Positions with any financial institution subject to 15 U.S.C. §§6801-6809 [Disclosure of Non-Public Personal Information] either directly or indirectly through other federal or state statutes or regulations.

[1] The act references the employer to 8 California Code Regulations 11040 for the definition of a managerial position; however, that regulation does not contain such a term. It does contain standard wage and hour classifications of executive, administrative and professional positions. So what is exactly intended by "management position" is not entirely clear; however, we assume that the bill references an executive position as that definition tracks the description used by other states when they have referred to management positions in statutes similar to this.  

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