Morris Manning & Martin, LLP

New California Laws Covering Credit Reports, Pay Notices and Independent Contractors


On October 7 and 9, 2011, California Governor Jerry Brown signed several employment-related bills into law which will take effect January 1, 2012, including:

  • A.B. 22, prohibiting employers from using consumer credit reports for employment purposes except in limited, specific circumstances. 
  • A.B. 1396, requiring employers to have written contracts with any employee paid by commission. 
  • S.B. 459, creating penalties for "willful" misclassification of individuals as independent contractors. 
  • A.B. 469, requiring employers to provide a notice to every employee at the time of hire specifying certain wage information including the pay rate and basis, overtime rate and any allowances claimed as part of the minimum wage.