CALIFORNIA JOINS SIX OTHER STATES IN RESTRICTING THE USE OF CREDIT REPORTS BY EMPLOYERS

As of January 1, 2012, California will join six other states in restricting the use of credit reports by employers. This new law limits an employer’s ability to perform credit checks on candidates and employees. There are specific criteria that, if met, permit a credit report to be run for employment purposes.  This criterion is listed below.

A credit report may be used for employment purposes if and only if the applicant’s position falls into one of these categories:

1. A managerial position.
2. A position in the State Department of Justice.
3. A law enforcement position.
4. A position for which the information contained in the report is required by law to be disclosed.
5. A position that involves regular access to confidential information (e.g., credit card account, social security number or date of birth).
6. A position which the person can enter into financial transactions on behalf of the company.
7. A position that involves access to confidential information.
8. A position that involves regular access to cash of $10,000 or more of the employer/customer/client.

 

Should a credit report be run on an applicant for employment purposes based on one of the above exemptions, the following steps must be taken to ensure compliance with this new law:

1. The employer must provide the individual with written notice that a report will be requested. 
2.  The employer must provide the specific reasons for obtaining the report.
3. A check box on the written notice allowing the applicant to request a copy of the credit report at no charge.

 

 For more information regarding this new law or the implementation of this law, please visit http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/ab_22_bill_20111009_chaptered.pdf or contact Mega Group Online at 818-392-5740.

SOCIAL SECURITY ADMINISTRATION TO IMPLEMENT SSN RANDOMIZATION

As of June 25, 2011, the SSA made changes to how SSNs are issued and verified.  This change is called SSN Randomization.

“The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers’ earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial number. Since 1972, the SSA has issued Social Security cards centrally and the area number reflects the state, as determined by the ZIP code in the mailing address of the application.” – SSA

 

 SSN randomization will affect the SSN assignment process in the following ways:

• It will eliminate the geographical significance of the first three digits of the SSN, currently referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states.

• It will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen in time and can be used for validation of SSNs issued prior to the randomization implementation date.

Previously unassigned area numbers will be introduced for assignment excluding area numbers 000, 666 and 900-999.

 

For more information on SSN Randomization, please visit http://www.ssa.gov/employer/randomization.html