HF2943

Purpose of the Bill

The purpose of this bill is to establish and enforce penalties for noncompliance with the Minnesota Secure Choice Retirement Program. The bill aims to ensure that covered employers enroll eligible employees in the program and adhere to contribution requirements.

Main Provisions

• Penalties for Noncompliance: The bill introduces financial penalties for covered employers who fail to comply with program requirements. These include failing to enroll employees or withholding necessary information.
• Graduated Penalties: Beginning from the second year of noncompliance, penalties increase annually:
  • $100 per employee in the second year, not exceeding $4,000.
  • $200 per employee in the third year, not exceeding $6,000.
  • $300 per employee in the fourth year, with further increases for continued noncompliance.
• Double Penalties: If an employer fails in different compliance areas, penalties can double.
• Notice and Waiver: Employers will receive a notice if facing penalties, and they can avoid charges by correcting violations within 30 days. Penalties may also be waived in special circumstances.

Significant Changes

• Introduction of Criminal Penalties: Noncompliance can lead to misdemeanor charges, especially if contributions deducted from employee paychecks are not remitted to the program.
• Civil Action: The bill allows employees or the Minnesota Attorney General to bring civil or criminal action against noncompliant employers, potentially resulting in damages, injunctive relief, and payment of legal fees to affected parties.

Relevant Terms

Minnesota Secure Choice Retirement Program, noncompliance, penalties, enrollment, covered employer, criminal penalties, civil action, misdemeanor, payroll deduction contributions.