Minneslate Logo

HF2943 (Legislative Session 94 (2025-2026))

Minnesota Secure Choice Retirement Program; penalties for noncompliance added, and criminal penalties provided.

Related bill: SF2984

AI Generated Summary

Purpose of the Bill

The bill aims to enforce the Minnesota Secure Choice Retirement Program by adding penalties for employers who do not comply with enrolling employees or managing payroll deductions as required.

Main Provisions

  • Penalties for Noncompliance: Employers who fail to enroll employees or distribute required retirement program information by specified dates will face escalating financial penalties. These start at $100 per employee, not exceeding $4,000 on the second anniversary of noncompliance, and increase each year.
  • Failure to Remit Contributions: Employers must remit payroll deduction contributions to the retirement program within a specified time. Failure to do so will result in penalties, interest charges, and potential misdemeanor charges if delays are willful.
  • Civil and Criminal Actions: Affected employees or the attorney general can bring civil actions against noncompliant employers. Employers may be liable for compensatory damages, civil penalties, and court costs. In severe cases, criminal charges can also be pursued.

Significant Changes to Existing Law

  • New Penalty Structure: Introduces financial penalties and potential misdemeanor charges for employers who fail to meet obligations under the Secure Choice Retirement Program.
  • Legal Actions: Allows for both civil and criminal proceedings against employers who violate the program requirements, providing a legal framework to enforce the new penalties.

Relevant Terms

  • Minnesota Secure Choice Retirement Program
  • Noncompliance penalties
  • Employer contribution remittance
  • Civil and criminal action against employers
  • Employee enrollment compliance

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Interest at the annual rate specified in section 356.59 subdivision 2 to be applied on late employee contributions."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill specifies penalties related to employer compliance with the Minnesota Secure Choice Retirement Program and references interest calculation under section 356.59.",
      "modified": [
        "Clarifies application usage of interest rate in penalties context."
      ]
    },
    "citation": "356.59",
    "subdivision": "subdivision 2"
  }
]

Sponsors