Compliance

California Investigative Consumer Reporting Agencies Act (ICRA) Civil Code Section 1786 is the law that governs pre-employment screening for California employers.

In an effort to combat the growing crime of identity theft, California's legislature revised the ICRA, greatly increasing the burden of California employers. Once most employers recognized what had happened, it was too late. The law went into effect January 1, 2002 leaving many employers scrambling to comply with the law's new requirements. Based on an outcry from employers, legislature passed a "clean-up" bill AB 1068.

First, let's look at AB 655 and what it started. The bill required an employer to notify applicants or current employees every time a background check was obtained. It set forth specific requirements regarding timing and what information must be provided. AB 655 also contained two changes to existing law. First it specifically required that an employer provide a copy of the report to the consumer within 7 days of receipt, whether it was requested or not. Second, the law extended its scope to cover background checks and investigations conducted in-house by an employer, without the use of a consumer reporting agency.

In a nutshell, here are some the newly enacted amendments from AB1068 that went into effect on September 28, 2002.