New Law Relating to the Use of Background Checks

Compliance Bulletin

Signed into law by Governor Brown on September 30, 2018, SB 1412 amends California Labor Code Section 432.7, relating to the use of background checks.  As originally proposed, the requirements of the bill would have contradicted the requirements of the Federal Deposit Insurance Act, which restricts financial institutions’ ability to hire employees who have been convicted of certain crimes. CBA was able to negotiate language addressing this quandary, but financial institutions are still urged to proceed with caution. CBA’s Regulatory Compliance Bulletin discussing the new law can be found here.