Bill > S2271

This bill, titled "Regulating the use of credit reports by employers," aims to restrict how employers and prospective employers can use consumer reports, which are documents detailing an individual's credit history and worthiness, for employment-related decisions such as hiring, firing, promotions, or compensation. Generally, employers will be prohibited from using these reports or asking employees or applicants about their credit information for employment purposes. However, there are exceptions: this restriction does not apply if federal or state law mandates the use of consumer reports, if an employee or applicant holds a high-level executive or managerial position at a federally insured financial institution with an annual compensation of $200,000 or more, or if the position requires a national security clearance. Even in these exceptional cases, employers must obtain written consent each time they access a report, clearly explain their reasons for accessing it and for any adverse employment action, provide the employee or applicant with a copy of the report and notice of their rights, and offer an opportunity to dispute the information. Employers are also forbidden from passing on the costs of obtaining these reports to employees or applicants, and any attempt to make employees or applicants waive these protections will be void. Violations can be reported to the Massachusetts Commission Against Discrimination and will be considered an unfair practice, with retaliation against those who file complaints or oppose violations also prohibited.