CALIFORNIA LEGISLATURE LIFTS SOME OF THE BURDEN
CAUSED BY RECENT AMENDMENTS TO THE STATE'S
INVESTIGATIVE CONSUMER REPORTING ACT (ICRA)

In an effort to curb "identify theft, last year California's legislature revised the state's Investigative Consumer Reporting Act resulting in substantial burdens on the state's employers. The law took effect January 2002 and specifically required employers to provide all applicants or employees a copy of their investigative reports within seven days, regardless of whether an employment decision was based upon the report.

While employers must still provide a notice to California consumers within three days of the request to obtain an investigative report, employers no longer must automatically provide the investigative report to the applicant or employee within seven days of the completion of the report. Instead, at the time the applicant provides his/her consent to the employer to obtain the investigative report, the employer must now provide a "check box" on the document. This will allow the individual to indicate affirmatively that he or she wants to receive a copy of any report received by the employer at the same time as the employer.

You may not have the time or means to document which California applicants should, and which should not, receive a report copy. Let Employment Screening Services be your reminder. We have made the necessary modification to our order processing program so that when you receive an ESS report on a California applicant, it will only include a special cover sheet and an explanation letter to the applicant if the applicant affirmatively indicated that he/she wanted a copy of the report when completed.

The revised law states the "check box" can be included on the disclosure and consent form, or as a separate document. Since employers must already provide a "check box" allowing California consumers with the option of receiving a copy of their consumer credit report if one is obtained (as long required by a different part of California civil code), ESS has modified its release form to comply with both laws. A copy of the new release is available at our client services' web site, www.essclientservices.com.

Previously, when California applicants requested a copy of their credit report, ESS mailed the credit report to applicant. The requirement now states that the California consumer must have the option to receive the entire report at the same time the employer receives the report. However, because parts of the report may be delayed for days and occasionally weeks due to circumstances beyond our control, ESS does not know when the employer considers the report sufficiently complete to make an employment decision. In summary, the employer should provide the consumer a copy of the entire report as of the date the report is considered sufficiently complete to make an employment decision.

Other changes to the newly revised amendments to the California ICRA include:

* Notice and consent is not required for investigations into misconduct or wrongdoing.
* Employers are not required to provide employees suspected of misconduct with a copy of the investigation report.
* An employer does not have to disclose in-house investigations or reference checks unless it obtains certain public records.

*These amendments were signed into law on September 28, 2002 and took effect immediately. Employment Screening Services provided this notification of the changes as soon as possible after notification by and consultation with our legal counsel, the largest California law firm specializing in employment law. However, this notification is meant for information purposes only. As always, please consult with your legal department regarding any changes affecting your business.