New Amendments to California's Investigative Consumer Reporting Agencies Act

Late in the California legislative session of 2001, an amendment to civil code 1786 was passed and went into effect January 1, 2002. The new law, which aims to protect California consumers against identity fraud, affects an employer's obligations when conducting a background check on a California resident. By all accounts, the new provisions contain language that is not entirely clear and because of the late passage of this amendment, most employers are not even aware of the new amendments at all.

To best support our clients who may screen California residents, Employment Screening Services, Inc. has retained the largest labor and employment law firm in the United States,. This firm, headquartered in Los Angeles, has guided us through the new amendments; however, our recommendations are not meant as legal advice., As always, we recommend consulting your legal department about the specific obligations of your business.

We have prepared a document that explains the obligations under the new California law. You may review it by clicking here or directly from the home page on our website at http://www.essclientservices.com. The complete section of 1786 of the civil code is also found on our website. In short, an employer must notify the California resident within three days of the employer's request for an investigative consumer report that such a report was requested. Secondly, the employer must provide a copy of the report to the applicant or employee within seven days. Although ESS cannot take these steps for you, please be sure to read the documents on our website to learn how we can help.

To comply with the new amendment that took effect on January 1, 2002, we suggest that all California applicants screened since that time receive a copy of their report. ESS will be happy to package together all reports run under your account and send them to you along with a cover letter for the applicants. The law does not allow us to send the reports for you.

Continued requests for and acceptance of ESS Reports on individuals residing in California certifies your agreement to comply with the California civil code as amended. Please feel free to contact us at 1-800-473-7778 if you have any questions or concerns. You will be receiving a packet in the mail within the next week with all information and forms.

Sincerely;

ESS Operations Staff