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Bill

H 4450

An Act regulating the use of credit reports by employers

194th Legislature (2025-2026) Introduced by Ken Gordon

H 4450 prohibits Massachusetts employers from using credit reports in hiring except for roles involving financial responsibility, requiring advance notice to applicants and establishing violation penalties.

Read second and ordered to a third reading
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Bill Summary · H 4450

Legislative bill overview

H 4450 restricts Massachusetts employers from using credit reports in hiring and employment decisions, except in limited circumstances involving financial responsibility or security access. The bill requires employers to notify job applicants when credit checks are used and establishes penalties for violations.

Why is this important

Credit-based hiring practices disproportionately affect low-income workers and those with past financial hardship, potentially creating barriers to employment for vulnerable populations. The policy debate centers on whether credit history legitimately predicts job performance versus whether it unfairly discriminates based on economic circumstances unrelated to actual work capability.

Potential points of contention

  • Scope of exemptions: Defining which positions genuinely require financial responsibility (finance roles, security clearances) versus overly broad employer interpretations
  • Business compliance costs: Employers must implement new screening procedures and notification systems, raising administrative burden concerns
  • Competitive balance: Whether restricting credit checks disadvantages Massachusetts employers compared to out-of-state companies with fewer hiring restrictions

Compiled from official sources — confirm details with the bill’s official record.

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