Arrest Record Discrimination Laws in Minnesota

Federal law provides limited protection related to arrest records. Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, prohibits employment discrimination based on race, color, religion, sex, or national origin—but does not directly address arrest records. However, the EEOC has issued guidance stating that blanket policies excluding people with arrest records can constitute racial discrimination because arrest disparities fall disproportionately on minorities. The Equal Employment Opportunity Commission (EEOC) enforces Title VII and may investigate complaints where arrest record policies have a disparate impact based on protected characteristics.

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681, requires background check companies to maintain accuracy and allows candidates to dispute arrest records on reports. However, the FCRA does not prohibit employers from considering arrest records in hiring decisions. Some states have adopted stronger protections. Federal contractors must comply with Executive Order 11246 and may face scrutiny if arrest-record policies result in discrimination. For most private-sector employees, state law provides the primary protection against arrest record discrimination.

Minnesota Statute section 364.03 provides significantly stronger protections than federal law by directly prohibiting arrest record discrimination in employment. The statute states that no employer may ask about, require disclosure of, or consider an arrest record that did not result in conviction when making employment decisions, unless the arrest record is substantially related to the particular job or a business necessity exists.

The law applies to all private employers with one or more employees, regardless of size. It also covers employment agencies, labor organizations, and apprenticeship programs. The statute is stricter than federal law because it creates an explicit categorical ban on arrest record discrimination, whereas federal law only addresses arrest discrimination indirectly through disparate impact theory under Title VII.

Minnesota also requires employers under Minnesota Statute 181.59 to inform job applicants if the employer intends to inquire about their criminal history. This notice must be provided before or at the time of the initial application. The statute distinguishes between arrests and convictions—only convictions may be fully considered without justification, while arrests require the substantial relationship and business necessity test.

Employers cannot refuse to hire, terminate, or take adverse action solely based on an arrest. They must conduct an individualized assessment considering factors such as the nature of the crime, time elapsed since arrest, applicant's rehabilitation efforts, and direct job relatedness. Remedies available under Minnesota law include reinstatement, back pay, front pay, compensatory damages, and statutory damages up to $25,000 for willful violations, plus attorney's fees and costs. This is administered by the Minnesota Department of Human Rights.

Minnesota law includes important exceptions where employers may lawfully consider arrest records. First, if an arrest record is substantially related to the particular job duties, an employer may consider it if a business necessity exists. For example, an arrest for financial crimes may be job-related for a bank teller position.

Second, arrests that resulted in conviction may be evaluated using the statutory standard in Minnesota Statute 364.04, which allows consideration of prior convictions if they relate to job safety, customer protection, or trustworthiness. An arrest standing alone without conviction cannot be used, but a conviction can be.

Third, certain positions are exempt from the arrest record prohibition. This includes government positions, particularly those involving law enforcement, judicial officers, or positions requiring a professional license where licensing boards have set standards. However, government employers are still restricted and cannot use blanket policies.

Fourth, bonding requirements may exempt certain positions. If a job requires bonding and a bonding company will not bond someone due to an arrest, the employer may have a defense, though this has been narrowly applied.

Fifth, federal law and federal contractor requirements may override state law. Employers with federal contracts may be required by federal law to conduct background checks and may have different standards.

Employers also have a defense if they can demonstrate that the arrest record has a genuine and substantial relationship to the specific job, and that denying the employment is based on a legitimate business necessity. The burden is on the employer to prove this relationship and necessity.

Step 1: Document Everything. Keep detailed records of all communications related to your employment, including the job posting, your application materials, interview notes, any written rejections, and any statements by employers or recruiters about your arrest record. If you discuss your arrest record, document the date, who you spoke with, what was said, and any witnesses. Take screenshots of job postings and save emails. Create a timeline showing when you applied, when you were rejected, and when similar candidates without arrest records were hired. This documentation is critical evidence in discrimination claims.

Step 2: Understand Internal Complaint Process. While Minnesota does not legally require employers to have an internal complaint procedure for arrest record discrimination, many larger employers do. Before filing an external complaint, check your employee handbook or HR policies to see if there is an internal grievance procedure. If one exists, file an internal complaint in writing to document that you brought the issue to the employer's attention. However, you are not required to exhaust internal remedies before filing with the Minnesota Department of Human Rights. Filing internally does not waive your legal rights, but it creates a paper trail and may prompt the employer to preserve evidence. Do not delay external filing to pursue internal remedies if the employer is unresponsive.

Step 3: File Complaint with Minnesota Department of Human Rights. You must file your complaint within one year from the date of the discriminatory action. The MDHR accepts complaints in person, by mail, by phone, or online through their website at https://www.human-rights.state.mn.us/. Submit Form 5002, which requires your name, contact information, employer name and address, date of the alleged discrimination, a description of what happened, and how the arrest record was used against you. Include whether the arrest resulted in conviction and what job outcome resulted (non-hire, termination, demotion, etc.). Provide names of witnesses and any documentary evidence. The filing fee is waived for complainants. After filing, MDHR will mail you a case number and assignment information.

Step 4: Investigation Process. The Minnesota Department of Human Rights will conduct an investigation, which typically takes 90 to 180 days. An investigator will contact you and the employer separately. The employer will receive a copy of your complaint and may submit a written response. The investigator will request documentation from both parties, including personnel files, hiring records, job descriptions, the application materials and interview notes, communications about your arrest record, and records of other applicants hired. The investigator may conduct interviews with you, the employer's representatives, and witnesses. You have the right to participate and provide additional evidence. If MDHR finds probable cause that discrimination occurred, they will send a Determination Letter to both parties. If they find no probable cause, they will close the case, but you may appeal or pursue private litigation.

Step 5: When to Consult an Attorney. Consult an employment attorney immediately if you are terminated or denied hiring and believe an arrest record was the reason. An attorney can help preserve evidence, respond to employer requests, and advise whether you have a strong claim under Minnesota Statute 364.03. Most Minnesota employment attorneys work on contingency in discrimination cases, meaning you pay no upfront fee. An attorney is essential if the MDHR investigation finds probable cause, because the next step involves negotiation or litigation where an attorney's experience is crucial. If the MDHR closes the case without probable cause finding, an attorney can advise whether to pursue a private lawsuit in state court, which must be filed within four years under the statute of limitations. An attorney can also help calculate damages, including back pay, front pay, emotional distress, and the statutory damages up to $25,000 available under Minnesota law.