Oppose AB 1450 (Allen)

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  • Mendoza
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AB 1450 (Allen) will prohibit employers from inquiring into an applicant’s employment history, for fear that any such inquiry will ultimately lead to penalties on the basis that the applicant was discriminated against because the applicant was unemployed. It also unfairly targets state contractors by imposing a three-year debarment from state contracts for violating the provisions of the bill, essentially providing a hiring preference for the unemployed with state contractors. 

AB 1450 prohibits employers from considering an applicant’s current employment status when hiring for an available position. Employers will be barred from asking for information regarding the applicant’s most recent employer such as dates of employment and reasons for separation from employment. Any of these inquiries could reveal that the applicant is currently unemployed, subjecting the prospective employer to fees, penalties, and administrative claims, as well as potential litigation for alleged unfair business practices.

This proposed legislation does not differentiate between those applicants who are unemployed due to their inadequate or insufficient performance, from those applicants who were unfortunately a part of a lay-off. An employer should be allowed to investigate the reasons a person is unemployed, especially to determine if the applicant was recently terminated for serious misconduct. AB 1450, however, would place employers in the impossible situation of either investigating an applicant’s most recent employment, and potentially face an administrative claim, or forego any investigation of the applicant and risk a potential negligent hiring claim on the backend for hiring an at-risk employee that the employer should have known was a potential danger. 

AB 1450 will create a hiring preference for such individuals, especially for state contractors. Instead of basing an employment decision on the actual qualifications of the applicant, employers will likely lean towards an unemployed applicant solely to eliminate any claim of alleged discrimination. This will certainly be the case for state contractors, as AB 1450 unfairly targets these employers by threatening them with three years of debarment.