Bill
H 3993
MA law bans most uses of credit history in employment decisions, with limited exceptions; requires notice and rights when a credit report is used; enforced by MCAD from Jan 1, 2026
Status & context
- Bill number: H 3993 (House Docket No. 2435). Filed Jan 16, 2025. Introduced by Rep. Kip A. Diggs (2nd Barnstable).
- Jurisdiction: Commonwealth of Massachusetts (text amends G.L. c.151B).
- Classification: Act / resolution format. Filed as legislation to amend chapter 151B (employment discrimination law).
- Key dates (from file): referred to the Joint Committee on Labor & Workforce Development 04/03/2025; Senate concurred 04/07/2025. Hearings were scheduled/rescheduled for 10/08/2025.
- Note: the packet provided also contains a separate South Carolina House resolution honoring Soda City FC (appears to be unrelated to the Massachusetts bill).
Purpose and intent
- The bill seeks to promote fair hiring practices by prohibiting most uses of an individual’s credit history or credit report in employment decisions, thereby reducing barriers to employment linked to credit problems.
Key provisions
1. Addition to G.L. c.151B (new Section 11)
- Broad prohibition: Except as listed below, it is an unlawful practice for an employer (directly or via an agent) to:
- Use an individual’s credit history as a factor in employment decisions (hiring, firing, promotion, demotion, compensation); or
- Request or obtain an individual’s credit report or inquire about their credit history for employment decisions.
2. Exceptions (where credit checks remain permissible)
- Positions requiring financial oversight (access to funds, accounting, fiduciary duties).
- Employment in financial services or in industries regulated by federal/state laws that mandate credit checks.
- Positions involving access to classified or national security information.
3. Procedural safeguards when an employer relies on credit reports under an exception
- Employer must:
- Notify the individual in writing of the specific reasons the credit history is being considered.
- Provide the individual a copy of the credit report and a statement of rights under the federal Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).
- Offer the individual an opportunity to dispute inaccuracies before a final hiring decision is made.
4. Enforcement and oversight
- Complaints alleging violations are to be submitted to “the commission” (the commission referenced in c.151B — i.e., the Massachusetts Commission Against Discrimination (MCAD) consistent with that chapter’s structure).
- The commission, with the Executive Office of Labor & Workforce Development, must run a public awareness campaign to inform employers and applicants of rights/responsibilities and provide resources for addressing credit histories.
- Annual report: The commission will prepare and submit an annual report (by Dec 31 each year) to the chairs of the Joint Committee on Labor & Workforce Development and legislative clerks, showing complaints, resolutions, violation patterns, and recommendations. First report due Dec 31, 2027.
5. Statutory housekeeping
- Section 1 of chapter 151B is amended to incorporate the new section 11 into the chapter’s enumerated unlawful practices.
6. Effective date
- The act takes effect Jan 1, 2026 and applies to employment decisions made on/after that date.
Who would be affected
- Employers in Massachusetts: most employers would be barred from using credit history in employment decisions unless an explicit exception applies.
- Job applicants/employees: individuals with adverse credit histories would be protected from most employment discrimination based on credit.
- Financial sector, security-screened positions, and employers subject to federal/state statutory credit checks: these employers may continue to use credit information but must comply with notice, disclosure and dispute procedures.
- Background check/reporting agencies and HR vendors: would need to adjust screening services and documentation practices for MA employers.
Potential impacts and considerations
- Likely to expand employment access for people with poor credit and reduce socioeconomic bias in hiring.
- Employers will need to revise hiring policies and train HR staff to comply with the prohibition and the procedural requirements when exceptions apply.
- Administrative effects: increased notices to applicants, provision of credit reports, and potential pre-decisional dispute handling.
- Regulatory oversight: MCAD (or the designated commission) will track complaints and publish findings and recommendations annually, and run outreach/education campaigns.
Related/ancillary material
- Related bill: HD 2435 (listed as a replacement).
- The filing includes an unrelated South Carolina House resolution recognizing Soda City FC; that text does not affect the Massachusetts statutory changes described above.
Compiled from official sources — confirm details with the bill’s official record.
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