AB 943 (Mendoza) Consumer Credit Reports

Long Beach Chamber Position: OPPOSE

AB 943 unduly restricts the ability of businesses and non-profit organizations to base employment decisions on the evaluation of all legally available information, including consumer credit reports.

AB 943 prohibits employers from using consumer credit reports for employment purposes unless the information is “substantially job related” which is defined narrowly and unless the position being sought is managerial, with a city or county, with law enforcement, or required by law to request a report.

It is important to note the distinction between a consumer credit report used to evaluate creditworthiness for the purpose of granting credit and the employment report provided to an employer for employment purposes. The employment report does not include credit scores or account numbers.