At-a-Glance Compliance Overview

State Mini-FCRA Laws

Minnesota does not maintain a comprehensive state consumer reporting statute equivalent to the “mini-FCRA” laws adopted in some other states. Employment background checks obtained through consumer reporting agencies are governed primarily by the federal Fair Credit Reporting Act (FCRA).

Minnesota does impose its own disclosure requirement for employment-related consumer reports under Minn. Stat. §13C.02. Under this statute, a person may not obtain or cause to be prepared a consumer report for employment purposes unless the applicant is clearly informed that a consumer report may be obtained and the applicant is given an opportunity to request a copy.

Employers using third-party screening providers must therefore comply with both federal FCRA procedures and Minnesota’s disclosure requirements.

Criminal Record Reporting Rules

Minnesota does not impose a state-specific time limit on reporting criminal convictions in consumer reports. As a result, convictions may generally be reported without time limitation under the federal Fair Credit Reporting Act unless the record has been sealed or expunged.

Non-conviction information is governed by federal law. Under FCRA §605, consumer reporting agencies generally may not report arrests, indictments, or other adverse non-conviction information that is more than seven years old.

Minnesota regulates the removal of criminal records through expungement and sealing statutes rather than through consumer reporting limits.

Expungement Statutes

Expungement procedures are governed by Minn. Stat. Chapter 609A. Individuals may petition a court to seal certain criminal records after meeting eligibility requirements and waiting periods.

Clean Slate Automatic Expungement

Minnesota adopted a Clean Slate system providing for automatic sealing of certain criminal records. The automatic expungement provision appears at Minn. Stat. §609A.015. This statute allows qualifying criminal records to be sealed without filing a petition once the statutory waiting period has passed and the individual has remained conviction-free.

Once a record has been sealed or expunged under Minnesota law, it generally should not appear in standard employment background checks.

Fair Chance / Ban-the-Box Law

Minnesota regulates criminal history inquiries through its statewide ban-the-box statute, codified at Minn. Stat. §364.021.

Employer Coverage

The statute applies to both public and private employers operating in Minnesota.

Criminal History Inquiry Timing

Employers may not inquire into or consider an applicant’s criminal record until:

• the applicant has been selected for an interview, or

• if no interview occurs, the employer has made a conditional offer of employment.

Employers must therefore remove criminal history questions from initial job applications.

Exceptions

The statute contains exceptions when another law requires a criminal background check before hiring or requires employers to consider criminal history in making employment decisions.

Minnesota’s statewide statute does not explicitly require a formal individualized assessment before taking adverse action based on criminal history.

Credit Check Restrictions

Minnesota does not impose a broad statutory restriction on employer use of consumer credit reports.

Employers may obtain credit reports for employment purposes if they comply with the federal Fair Credit Reporting Act and Minnesota’s disclosure requirement under Minn. Stat. §13C.02.

This means employers must:

• disclose that a consumer report may be obtained for employment purposes

• obtain the applicant’s authorization

• follow federal adverse action procedures when employment decisions rely on consumer report information.

Cannabis Use and Drug Testing Rules

Minnesota legalized recreational cannabis in 2023 and maintains a separate medical cannabis program.

Employers may continue to maintain drug-free workplace policies and may prohibit employees from working while impaired by drugs or alcohol.

Minnesota law allows workplace drug testing under certain circumstances, particularly for safety-sensitive positions or where federal regulations require testing. However, changes to state cannabis law affect how marijuana-related offenses appear in criminal records because certain cannabis offenses are eligible for expungement under Minnesota’s expungement statutes.

Employers should review workplace drug testing policies to ensure they remain consistent with Minnesota cannabis law and applicable federal regulations.

Pay Equity and Salary History Rules

Minnesota now regulates compensation practices during hiring through both a salary history ban and pay transparency requirements.

Salary History Ban

Beginning January 1, 2024, Minnesota prohibits employers from asking applicants about their past or current compensation during the hiring process. Employers may not rely on wage history to determine compensation.

Pay Transparency Requirements

Beginning January 1, 2025, Minnesota requires employers with 30 or more employees to include a salary range and a general description of benefits and other compensation in job postings for positions performed in Minnesota.

These rules significantly affect recruiting practices and job posting requirements for employers operating in the state.

Local Fair Chance or Screening Ordinances

Minnesota does not have major local ordinances that change the timing of criminal background checks beyond the statewide ban-the-box law.

However, Minneapolis has adopted civil rights protections that recognize justice-impacted status as a protected category under the city’s anti-discrimination ordinance. These protections affect how employers evaluate criminal history when making employment decisions within Minneapolis.

Although the statewide ban-the-box law governs when employers may inquire about criminal history, employers operating in Minneapolis should account for the city’s civil rights protections when considering criminal records in hiring decisions.

Record Sealing / Clean Slate Laws

Minnesota allows criminal records to be sealed through both petition-based and automatic expungement.

Petition-based expungement is governed by Minn. Stat. Chapter 609A, which allows individuals to petition a court to seal certain criminal records after meeting statutory waiting periods.

Minnesota’s Clean Slate law also allows automatic expungement of certain records under Minn. Stat. §609A.015 once eligibility conditions are met.

These laws can significantly affect employment background checks because sealed or expunged records generally may not appear in standard consumer reports.

Key Statutes

• Minnesota Ban-the-Box Law — Minn. Stat. §364.021
• Minnesota Consumer Report Disclosure Law — Minn. Stat. §13C.02
• Minnesota Expungement Statutes — Minn. Stat. Chapter 609A
• Minnesota Clean Slate Automatic Expungement — Minn. Stat. §609A.015

Employer Compliance Checklist

Employers conducting background checks in Minnesota should take several compliance steps.

Remove criminal history questions from initial employment applications.

Delay criminal history inquiries until after the applicant has been selected for an interview or received a conditional job offer if no interview occurs.

Comply with federal FCRA procedures and Minnesota disclosure requirements before obtaining consumer reports.

Ensure background screening providers exclude expunged or automatically sealed records from employment reports.

Update hiring practices to comply with Minnesota’s salary history ban and pay transparency requirements.

Account for Minneapolis civil rights protections when evaluating criminal history for positions located within the city.