Bill > H3993

This bill aims to limit the use of credit reports in employment decisions by amending Massachusetts labor laws. It prohibits employers from using an individual's credit history as a factor in employment decisions such as hiring, firing, promotion, demotion, or compensation, with specific exceptions for positions involving financial oversight, roles in regulated financial services, and jobs requiring access to classified or national security information. When employers do use credit reports for these exempted positions, they must provide written notification to the job candidate, share a copy of the credit report, explain the specific reasons for considering credit history, and allow the individual to dispute any inaccuracies before a final employment decision is made. The bill also requires the state commission, in collaboration with the labor workforce development office, to launch a public awareness campaign about these new hiring practices and prepare an annual report detailing complaint filings, violation patterns, and recommendations for improving workforce equity. The new law will take effect on January 1, 2026, and apply to all employment decisions made on or after that date, with the goal of promoting fairer hiring practices and reducing potential discrimination based on credit history.

Labor and Employment

https://malegislature.gov/Bills/194/H3993