Minnesota Employment Background Screening Laws 2025: A Comprehensive Guide
Employers in Minnesota must navigate a complex landscape of employment laws. Staying compliant is crucial. This guide covers key background screening laws for 2025. We explore criminal history use, credit report restrictions, and emerging AI regulations.
Minnesota’s Clean Slate Law and Criminal Offenses
Minnesota’s Clean Slate Law, effective January 1, 2025, significantly changes criminal record usage. This law automates expungement for many eligible records. Employers must be aware of these changes.
Criminal History Look-Back Period
Minnesota law doesn’t specify exact time limits for considering criminal records. Instead, employers must evaluate each case individually. Having said that, most employers tend to follow the FCRA guidelines as a safe harbor. For roles with salaries of $75,000 or more, FCRA restrictions don’t apply.
This approach considers several important factors. First, the nature and severity of the offense matter significantly. Next, the time elapsed since the conviction plays a crucial role. Additionally, relevance to the specific job responsibilities is essential.
Generally, convictions beyond 7-10 years receive less weight. However, no strict cut-off exists in state statutes. The Minnesota Human Rights Act (MHRA) requires this individualized assessment. Consequently, automatic disqualification based on criminal history violates state law.
Minnesota Statutes § 364.021 – Employment; Consideration of Criminal Record
Clean Slate Law – 2025 Changes
Effective Jan 1 2025, Minnesota seals eligible misdemeanors after 2 years and felonies after 5 years of clean record.
Violent crimes, DWI, and offenses against children remain visible. Employers cannot lawfully use expunged records.
Minnesota Ban-the-Box Laws
Statewide Requirements
Minnesota’s statewide ban-the-box law applies to both public and private employers. Importantly, companies with 15+ employees must comply. The law prohibits criminal history inquiries during initial applications. Instead, employers must wait until interviews or conditional offers occur. This approach provides fair consideration for all applicants.
Municipal Ordinances
- Minneapolis: Applies to employers with 6+ employees. Delays criminal history questions until after conditional job offers. Effective August 1, 2025, Minneapolis expands protections for individuals with criminal histories. This ordinance adds “justice-impacted status” as a protected characteristic. Employers in Minneapolis cannot base decisions on this status unless it’s “reasonably based” on job duties. Includes specific adverse action procedures.
- St. Paul: Affects employers with 5+ employees. Requires individualized assessment before rescinding offers. Mandates specific notice requirements.
- Duluth: Covers city contractors and employers with 10+ employees. Prohibits job applications with criminal history questions.
- Rochester: Applies to employers with 15+ employees. Delays background checks until after conditional offers.
These local ordinances complement the state’s Ban the Box law. Employers in these cities face stricter notification requirements. Always check local regulations for compliance.
Restrictions on Employment Credit Reports
Minnesota law generally restricts the use of consumer credit reports for employment. An employer must disclose their intent to obtain a consumer report. This disclosure must be clear and accurate. It also must inform the consumer of their right to request a copy of the report.
The disclosure should be in writing. It must be provided before the report is obtained. If a written application exists, the disclosure should accompany it. Consumers can request a copy of their report. This copy must be sent within 24 hours of the employer receiving it. There are specific exceptions, such as for investigations of current statutory violations by employees.
Official Source: Minnesota Revisor’s Office – 13C.02 Disclosure of Use of Consumer Reports for Employment Purposes (Provides the full statutory text on credit report usage).
Note: The Minnesota Consumer Data Privacy Act (MCDPA) taking effect July 31, 2025, generally exempts data processed in an employment context from its consumer rights framework. However, the existing specific law on employment credit reports still applies.
Use of AI for Employment Background Checks
The use of Artificial Intelligence (AI) in employment practices is growing. Minnesota has begun discussing the need for regulation. While no specific state law fully addresses AI in employment screening yet, discussions are ongoing. The Minnesota Senate’s Committee on Labor met in February 2025. They discussed regulating AI to protect workers. This indicates potential future legislation.
Employers using AI tools for screening must be cautious. Existing anti-discrimination and privacy laws still apply. AI tools can inadvertently lead to discriminatory outcomes. Employers should assess their AI practices. Auditing tools for bias is recommended. Documenting fairness measures is also crucial. Reviewing AI policies to align with emerging laws is a good practice. This includes transparency and data privacy.
Official Source: Minnesota Public Artificial Intelligence Services Security Standard (While focused on government use, it reflects the state’s approach to AI governance and security, hinting at broader considerations).
Summary
Minnesota’s 2025 background screening laws protect fairness and second chances. Ban‑the‑Box and Clean Slate remove barriers. Key rules:
- Criminal history questions delayed
- Seven‑year FCRA look‑back baseline. More flexible for $75K+ salary
- Clean Slate seals old records
- Credit checks limited
- Mandatory consent, disclosure, adverse‑action process
- AI tools require bias monitoring
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Case Law on Hiring and Firing Lawsuits
These cases show the importance of following Ban the Box and EEOC rules. Employers must document job-related reasons for adverse actions.
Minnesota Employment Screening
- SSN Trace, Names, Aliases & Address history
- Nationwide Criminal Database Search based on user input
- National Sex Offenders based on user input
- USA/SDN/OFAC Patriot Act databases based on user input
- Federal USDC Criminal Search based on user input
- (1) County Court Criminal Search based on user input
- 24 Hours turnaround or less
FAQs – Minnesota employment background checks
Before you can request a background check (referred to as a “consumer report”) from a third-party screening company, you must comply with state law, which mirrors the federal Fair Credit Reporting Act (FCRA). You must first provide the applicant with a clear, written disclosure stating that you may obtain a consumer report for employment purposes. This disclosure must be a standalone document, separate from the job application.
You must also obtain the applicant’s written authorization before proceeding with the check. Failing to get this explicit consent can lead to legal liability.
Governing Law: Minnesota Statutes, Chapter 13C, Access to Consumer Reports (Minn. Stat. § 13C.02).
Description: This statute requires employers to provide a written disclosure and obtain written authorization from an individual before obtaining a consumer report for employment purposes.
Administering Agency: While there isn’t a single state agency that proactively enforces this chapter, violations are typically addressed through private lawsuits filed by individuals. The Minnesota Attorney General’s Office also has broad authority to enforce consumer protection laws.
Minnesota’s “Ban the Box” law restricts when you can inquire about an applicant’s criminal record. You cannot ask about criminal history on an initial job application. This includes check boxes asking about convictions or any other form of inquiry.
You may only inquire about, consider, or require disclosure of an applicant’s criminal record history after they have been selected for an interview or, if no interview is conducted, after a conditional offer of employment has been made.
Governing Law: Minnesota Statutes, Chapter 364, Criminal Offenders, Rehabilitation (Minn. Stat. § 364.021).
Description: This law prohibits public and private employers from inquiring into an applicant’s criminal record on the initial job application, delaying the inquiry until later in the hiring process.
Administering Agency: The Minnesota Department of Human Rights (MDHR).
Yes. Minnesota law generally prohibits employers from considering certain older criminal records. Specifically, you cannot use, distribute, or disseminate records of arrests that did not lead to a conviction, annulled or expunged convictions, or misdemeanor convictions for which no jail time was served.
More importantly, the law establishes a “lookback” period for convictions. A conviction cannot be the basis for disqualifying an applicant if more than seven years have passed since the date of conviction or the end of the incarceration period, and the individual has not been convicted of any other crime in the interim. However, this seven-year lookback limit does not apply if the conviction directly relates to the specific job duties and responsibilities of the position in question.
Governing Law: Fair Credit Reporting Act, Section 605 (15 U.S.C. § 1681c) and Minnesota Statutes, Chapter 364, Criminal Offenders, Rehabilitation (Minn. Stat. § 364.03).
Description: The federal FCRA sets a seven-year lookback limit for reporting most non-conviction adverse information and arrests. Minnesota’s Chapter 364 further governs how employers can use conviction records, requiring a direct relationship between the crime and the job if the conviction is over seven years old.
Administering Agency: The Federal Trade Commission (FTC) enforces the FCRA. The Minnesota Department of Human Rights (MDHR) enforces Chapter 364.
Yes. Employers providing services to children or vulnerable adults are subject to mandatory, enhanced background studies. These checks are conducted directly by the Minnesota Department of Human Services (DHS) through their NETStudy 2.0 system, not by a private screening company.
These studies are much more comprehensive and include checks of various state and federal databases. The law specifies a list of crimes that can permanently or temporarily disqualify an individual from holding positions with direct contact with vulnerable populations. The standard “Ban the Box” and lookback rules do not apply to these state-mandated checks.
Governing Law: Minnesota Statutes, Chapter 245C, Human Services Background Studies (Minn. Stat. Chapter 245C).
Description: Often called the “DHS Background Study Law,” this chapter requires providers licensed by DHS or the Minnesota Department of Health (MDH) to conduct specific background checks on all individuals who will have direct contact with patients or clients.
Administering Agency: The Minnesota Department of Human Services (DHS).
To obtain a driving record, you must have a permissible purpose under the law, such as for employment where driving is a required job function. Like other background checks, you must notify the applicant and get their written consent before requesting the record.
Minnesota law classifies driving records as private data. To access them, the applicant must complete and sign a “Minnesota DVS Record Request” form, which grants you permission. You can then submit this form to the Department of Public Safety’s Driver and Vehicle Services (DVS) division to obtain the record. You must evaluate the information in the MVR in relation to the specific driving requirements of the job.
Governing Law: Minnesota Government Data Practices Act (Minn. Stat. § 13.05, subd. 4) and Driver and Vehicle Services Data (Minn. Stat. § 171.12).
Description: These statutes classify driving records as private data and outline the specific requirements for access, including obtaining informed written consent from the data subject (the applicant) for a specific purpose.
Administering Agency: The Minnesota Department of Public Safety (DPS), Driver and Vehicle Services (DVS) division.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult with qualified legal counsel regarding specific compliance questions.