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Legislative News and Views - Rep. Mohamud Noor (DFL)

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House Committee Approves Legislation Prohibiting Credit Information Use By Employers

Tuesday, February 16, 2021

St. Paul, Minnesota — Today, the House Labor, Industry, Veterans and Military Affairs Finance and Policy Committee heard legislation authored by State Representative Mohamud Noor (DFL – Minneapolis) to prohibit employers from requesting or using credit information as a condition of employment for hiring, firing, or compensation determinations, or in any way that affects the terms and conditions of their employment.

Around 40% of employers make hiring decisions based on credit information, making it more difficult for Minnesotans to find employment based on their skills and qualifications without the burden of past credit history. Many workers impacted by the current public health crisis suffer the consequences of credit information used by employers in their search for a new job.

Can you imagine being denied a job because of your credit information, especially if you have been affected by the COVID-19 pandemic? This is truly an invasion of privacy,” said Rep. Noor. “These violations disproportionately affect Black, Indigenous and other people of color, making it a progressive step towards equity protections for Minnesotans.

The bill excludes positions involving routine access to confidential financial or personal information (credit union employers, peace officers, etc.), and accounts for several exceptions, including if the information is required under state or federal law or if there is a valid business need for the information. 

The committee approved the bill which was referred to the Judiciary Committee for further consideration.