Bill
H 4450
Mass. bill bars employers from using consumer credit reports in hiring, forbids requesting or probing credit details, with narrow exceptions, protects applicants from retaliation.
Status: Introduced and reported favorably by the House Committee on Labor and Workforce Development (9/4/2025); Rules suspended and read a second time 10/8/2025. Classification: bill (resolution text in the packet appears to include an unrelated House resolution honoring Rev. Dr. Marcell D. Bush — see note below).
Purpose
- To restrict employers’ use of consumer credit reports and the use of credit-related questions in hiring and employment decisions, by adding a new Section 51C to Chapter 93 of the Massachusetts General Laws.
Key provisions
- Adds Section 51C to Chapter 93 (definitions and prohibitions):
- Defines “consumer report” and “employment purposes” by reference to existing Section 50.
- Prohibits any person or entity from:
- Using a consumer report as a criterion for employment purposes;
- Requesting or procuring a consumer report for employment purposes; or
- Requiring an employee/applicant to answer questions about the contents of a consumer report related to creditworthiness, credit standing, or credit capacity.
- Clarifies that matters of public record may still be used for employment purposes unless otherwise unlawful.
- Narrow exceptions where consumer reports may be used for employment purposes:
1. When federal or state law/regulation or self‑regulatory organization rules require background screening for which the consumer report is relevant.
2. For positions that require national security clearance.
3. For staffing agency employees (per M.G.L. c.149, §159C and licensed under c.140, §46A–46R) who apply for or hold senior positions with “fiduciary responsibility and substantial financial responsibility” (further defined by regulation).
- Anti-retaliation protection:
- Employers (and agents) may not retaliate, discriminate, or take adverse actions against employees/applicants who refuse to produce a consumer report or who exercise rights or participate in enforcement actions under this section.
- Waiver prohibition:
- Any waiver of rights under this section is void and may not be required by employers.
- Technical amendment:
- Section 51 of Chapter 93 is amended to reference the new Section 51C (“under section 51C” inserted after “purposes”).
- Effective date:
- The bill states an effective date of January 1, 2025 (note: this predates the bill’s filing and may be an internal drafting/typographical issue).
Who would be affected
- Employers and hiring entities in Massachusetts (broadly restricted from using credit reports in employment decisions).
- Staffing agencies and their employees (subject to a narrowly drawn exception for certain senior fiduciary/financial roles).
- Consumer reporting agencies and background-screening vendors (reduced demand from employment uses).
- Job applicants and employees (increased privacy and protection from adverse employment consequences tied to credit information).
Enforcement and implementation notes
- The bill references protections tied to filing complaints and participation in investigations (cross-references section 68 of Chapter 93), but the text does not set out specific fines or enforcement procedures beyond anti-retaliation language. Regulatory definitions (e.g., “fiduciary responsibility and substantial financial responsibility”) are to be defined by regulation, so administrative rulemaking will be needed to implement parts of the statute.
Procedural timeline (selected)
- Filed: 8/11/2025 (committee report dated 9/4/2025).
- Reported favorably by Labor & Workforce Development (9/4/2025); referred to House Steering, Policy & Scheduling.
- Rules suspended and read second time (10/8/2025); ordered to third reading.
Note about document contents
- The packet includes an unrelated South Carolina House resolution (filed 4/30/2025) honoring Rev. Dr. Marcell D. Bush on his nineteenth pastoral anniversary. That resolution is separate from the Massachusetts bill text regulating employer use of credit reports.
Compiled from official sources — confirm details with the bill’s official record.
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