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SF2361 (Legislative Session 94 (2025-2026))

Employer misrepresentation and misconduct penalties increasement provision

Related bill: HF2145

AI Generated Summary

This bill proposes amendments to Minnesota employment laws to increase penalties for employer misrepresentation and misconduct. Key changes include:

  1. Stronger Penalties for Employer Misconduct

    • Employers who make false statements, misrepresent facts, or fail to disclose material information to impact unemployment benefits will face higher fines.
    • The penalty will now be the greater of $500 or 100% (previously 50%) of the resulting financial impact.

  2. Additional Penalties for Misclassification of Employees

    • Employers who fail to properly classify workers as employees may face an additional penalty of up to $10,000 per misclassified individual.

  3. Penalties for Failure to Comply with Subpoenas

    • Employers who refuse to comply with subpoenas related to unemployment investigations will face a $500 fine plus enforcement costs, including attorney fees.

  4. Collection and Appeals Process

    • Penalties must be paid within 30 days and will be deposited into the state’s unemployment insurance trust fund or the family and medical benefit insurance account.
    • Employers can appeal a penalty determination within 45 days.

Overall, this bill strengthens enforcement against employer fraud, enhances worker protections, and increases financial consequences for violations.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025HouseFloorActionReferred toJobs and Economic Development
March 09, 2025SenateFloorActionReferred toJobs and Economic Development
March 09, 2025SenateFloorActionReferred toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [
        "An additional penalty of up to $10,000 may be imposed for misclassification of employees."
      ],
      "removed": [],
      "summary": "This bill amends penalties for employer misrepresentation under section 268.184.",
      "modified": [
        "Increased penalty percentage from 50% to 100% for overpaid or underpaid unemployment benefits."
      ]
    },
    "citation": "268.184",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to unemployment benefit payment criteria under section 116L.20.",
      "modified": []
    },
    "citation": "116L.20",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References additional penalties under section 268.047.",
      "modified": []
    },
    "citation": "268.047",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Outlines appeal procedures related to employer penalties under section 268.105.",
      "modified": []
    },
    "citation": "268.105",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to subpoenas under section 268.188.",
      "modified": []
    },
    "citation": "268.188",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "An additional penalty of up to $10,000 for failing to classify employees properly."
      ],
      "removed": [],
      "summary": "This bill strengthens penalties for employer misconduct under section 268B.19.",
      "modified": [
        "Increased penalty amount for collusion with applicants in receiving overpaid benefits."
      ]
    },
    "citation": "268B.19",
    "subdivision": ""
  }
]

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