Bill > S2394

This bill, titled "Regulating the use of credit reports by employers," amends existing Massachusetts law to place new restrictions on how employers can use consumer reports, which are documents containing information about an individual's credit history, for employment-related decisions. The bill defines "employment purposes" broadly to include evaluating candidates for hiring, promotion, termination, and other employment conditions. Generally, employers are prohibited from using consumer reports for these purposes, requesting them, or asking employees or applicants about their credit information. However, there are exceptions, such as when federal or state law requires it, for certain executive or managerial positions at financial institutions, for positions requiring national security clearance, or for roles involving significant financial responsibility, such as having signatory authority over substantial funds or fiduciary duties. Even in these exceptional cases, employers must obtain written consent from the individual each time they access a consumer report, clearly disclose their reasons for accessing it, and provide at least 14 days' notice before taking any adverse employment action based on the report, including a copy of the report and the opportunity for the individual to dispute the information. The bill also prohibits employers from retaliating against employees or applicants who exercise their rights under this law and states that any attempt to waive these protections is void. Violations are considered unfair practices under Massachusetts law.