HF2145 (Legislative Session 94 (2025-2026))
Employer misrepresentation and misconduct penalties increased.
Related bill: SF2361
AI Generated Summary
This bill proposes amendments to Minnesota Statutes 2024 to increase penalties for employer misrepresentation and misconduct regarding unemployment benefits and worker classification. Key provisions include:
Increased Administrative Penalties:
- Employers (or their employees, officers, or agents) who make false statements, misrepresentations, or knowingly fail to disclose material facts to affect unemployment benefits will face higher penalties.
- The penalty is now either $500 or 100% (up from 50%) of the improperly obtained or avoided amount, whichever is greater.
- A penalty of up to $10,000 may be imposed per misclassified employee.
Subpoena Non-Compliance:
- Employers who fail or refuse to honor subpoenas related to unemployment investigations will be fined $500 plus enforcement costs, including attorney’s fees.
Employer Misconduct Penalty:
- Employers colluding with applicants to fraudulently receive benefits will be penalized the greater of $500 or the amount of fraudulent benefits.
- False statements or the concealment of material facts will now result in larger penalties.
- Misclassification of workers can result in an additional $10,000 fine.
Payment and Appeals:
- Penalties must be paid within 30 days and are subject to the same collection process as past-due taxes.
- Employers have 45 days to appeal penalty determinations.
Funds collected from penalties will be credited to the trust fund (for unemployment benefits) and the family and medical benefit insurance account. The bill strengthens enforcement to prevent fraud and misclassification in Minnesota’s workforce system.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Workforce, Labor, and Economic Development Finance and Policy |
| March 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Workforce, Labor, and Economic Development Finance and Policy |
| March 10, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"A new penalty for failing to classify or treat workers as employees according to specific Minnesota Rules."
],
"removed": [
""
],
"summary": "This bill increases penalties related to employer misrepresentation under section 268.184, subdivision 1.",
"modified": [
"Increases penalty percentages from 50% to 100% for misrepresentation actions."
]
},
"citation": "268.184",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"An additional penalty for misclassifying employees under certain Minnesota Rules."
],
"removed": [
""
],
"summary": "This bill increases penalties for employer misconduct under section 268B.19.",
"modified": [
"Increases the penalty for misrepresentation actions similar to section 268.184."
]
},
"citation": "268B.19",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Section 268.188 is referenced regarding penalties for failing to honor a subpoena.",
"modified": [
"Clarifies the penalties associated with noncompliance."
]
},
"citation": "268.188",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "References penalties related to certain activities under section 268.047, subdivision 4.",
"modified": [
"Reiterates that penalties are in addition to other penalties and are subject to collection procedures."
]
},
"citation": "268.047",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Section 268.105 is mentioned in the context of appeals related to penalty determinations.",
"modified": [
"Clarifies the process for appealing penalty determinations."
]
},
"citation": "268.105",
"subdivision": ""
}
]