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HF2146 (Legislative Session 94 (2025-2026))

Annual reports from partnership entities of the Intergovernmental Misclassification Enforcement and Education Partnership required, and money appropriated.

Related bill: SF2360

AI Generated Summary

Purpose of the Bill

This bill aims to address and reduce worker misclassification in Minnesota. Worker misclassification occurs when employers incorrectly label employees as independent contractors or other non-employee forms. The bill seeks to make state agencies analyze and report the impacts of such misclassifications on workers, businesses, and government programs.

Main Provisions

  • Annual Reporting Requirement: Starting March 1, 2026, partnership entities must submit annual reports to the legislature. These reports will estimate:

    1. The number of workers affected by misclassification.
    2. The financial cost to impacted workers.
    3. The competitive harm to law-abiding employers.
    4. The incidence of misclassification across different industries.

  • Economic and Social Impact Analysis: The bill requires several state departments to provide annual estimates of misclassification impacts, including:

    • Effects on unemployment insurance and family medical benefits.
    • Income tax collection and other government programs.
    • Workers' compensation funds and insurance rates.

Significant Changes

  • This bill amends existing Minnesota Statutes section 181.725 by adding specific requirements for annual misclassification reporting.
  • It appropriates funds from the general fund for fiscal years 2026 and 2027 to multiple state agencies. These funds aim to support the analysis and evaluation of misclassification fraud impacts.

Relevant Terms

  • Worker Misclassification
  • Independent Contractor
  • Unemployment Insurance
  • Workers' Compensation
  • Tax Collection
  • Economic Development
  • Fiscal Appropriation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toWorkforce, Labor, and Economic Development Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A subdivision detailing misclassification rates and required annual reporting by partnership entities."
      ],
      "removed": [
        "No existing provisions are removed."
      ],
      "summary": "The bill amends Minnesota Statutes 2024 section 181.725 by adding requirements for annual reports from partnership entities.",
      "modified": [
        "Addition of new reporting and estimation requirements for various departments."
      ]
    },
    "citation": "181.725"
  }
]

Sponsors