Chambers Take Action on Credit Report Reform Proposal
Employee theft is a growing problem. The U.S. Chamber of Commerce rates the annual cost at $40 billion. According to the Federal Bureau of Investigation, this is the fastest growing crime in the United States and many experts estimate that it increases at a rate of 15 percent annually. AB 943 is working its way through the Legislature that will severely diminish an employer’s ability to protect their business from this real threat.
“For any employer the risk created by AB 943 represents a major liability that discourages business growth in California,” stated Roger Ziemer, Chair of the Southwest California Legislative Council. “For small businesses, every little bit counts and it is their right and responsibility to protect the business within reason. This proposal unduly restricts the ability of businesses to use all legally available information in employment decisions,” continued Ziemer.
On average, businesses lose as much as two percent of sales to employee theft. AB 943 prohibits employers from using consumer credit reports for employment purposes unless the information is “substantially job related,” as defined, including positions that handle cash, other assets, or personal information, and at least one of the following conditions: managerial, municipal, sworn peace officer or other law enforcement, or as otherwise required by law. Moreover, language in AB 943 strongly mirrors language from AB 2918 (2008) that was vetoed by Governor Schwarzenegger.