Minnesota Background Screening Requirements for Employers

Employers operating in Minnesota must comply not only with the federal Fair Credit Reporting Act (FCRA), but also with state-specific regulations that govern how criminal background checks and consumer reports may be used in employment decisions. Minnesota law places additional emphasis on disclosure, consent, accuracy, and timing, especially when a background check is conducted through a third-party agency like Personnelgraph.

This page outlines the key legal obligations Minnesota employers must follow and how Personnelgraph ensures compliance through built-in authorization, intelligent court selection, and automated reporting safeguards.

1. Minnesota Statute §13C – Consumer Reports for Employment

This statute works alongside the FCRA and requires employers to:
Provide a written disclosure stating that a consumer report may be obtained for employment purposes.
Obtain written authorization from the applicant before ordering the report.
Use a compliant process when taking adverse action based on the results.

Personnelgraph’s authorization workflow fully complies with Minnesota Statute §13C.

2. Minnesota “Ban the Box” Law

Minnesota was one of the first states to adopt “Ban the Box” protections.

Employers are prohibited from:
Asking about criminal history on a job application
Conducting a criminal background check before a candidate is selected for an interview
(or before a conditional offer is made if no interview is conducted)

This means that criminal history can only be considered later in the hiring process, not at initial application.

Personnelgraph supports compliance by automating authorization only after a conditional stage, based on employer workflow.

3. Applicant Notification and Rights

Minnesota law requires that applicants be informed if a background check is being conducted and provided with access to their report upon request.

Minnesota provides additional rights beyond FCRA:
Applicants have the right to request and receive a free copy of their background check report.

If employment is denied based on the report, the applicant must be informed of this fact and given an opportunity to dispute inaccuracies.

Personnelgraph includes automated delivery of candidate disclosures and report copies upon request.

4. Minnesota Adverse Action Requirements

Minnesota mirrors the federal FCRA but includes additional emphasis on candidate rights.

Before taking adverse action, employers must:
Provide a Pre-Adverse Action Notice with:
A copy of the report
A summary of the consumer’s rights under both the FCRA and Minnesota law
Allow the applicant a reasonable amount of time to dispute inaccuracies
Provide a Final Adverse Action Notice only after that period has passed

Personnelgraph automates the full adverse action process with Minnesota-compliant notices and timelines.

5. Limitations on Use of Certain Criminal Records

Minnesota restricts certain types of criminal history from being used in employment decisions:

Arrests not resulting in conviction - Cannot be used for employment decisions
Expunged, sealed, or pardoned records - Not reportable
Juvenile records - Not reportable
Misdemeanors without conviction - Cannot be considered

6. Minnesota Data Accuracy and Reinvestigation Requirements

Similar to FCRA, Minnesota law requires consumer reporting agencies and employers to ensure accuracy and provide a dispute mechanism if a candidate believes information is incorrect.

Personnelgraph offers real-time status updates and reinvestigation workflows to meet these obligations.

Minnesota maintains strict consumer protection standards for employment background checks. Employers must follow both federal and state-specific procedures, particularly around timing, consent, and the use of criminal records. Failing to comply can result in civil penalties and lawsuits.