On May 7, 2018, Assembly Bill 2770 (“AB 2770”) unanimously passed the California State Assembly.
AB 2770, the full text of which can be found here, would permit an employer to state on a reference check that the employee was not eligible for rehire based upon the “employer’s determination that the former employer engaged in sexual harassment.” There are no minimum due process or investigation standards applicable to any such employer determination, and the former employer is provided with a privilege against defamation due to the conveyance of the information. All that is required is the employer make such statement “without malice.”
The Bill has been referred to the Senate. The California Governor’s Office has not taken a position, however, the bill is supported by the California Chamber of Commerce, which makes passage likely. If the Bill passes, it may help to address employer concerns regarding harassment complaints and defamation lawsuits.
If you have any questions regarding California’s unique employment laws or these employment law updates, please contact Philip Toomey. Phil serves as Leech Tishman’s West Coast Business & Employment Client Relations Partner and practices in the firm’s Employment, Corporate, Litigation and Real Estate Practice Groups. Phil is based in the Leech Tishman’s El Segundo, CA office. He can be reached at 424.738.4400 or ptoomey@leechtishman.com.
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