HF4708

Commissioner disallowed to consider an employer reporting of fraud as retaliation.
Legislative Session 94 (2025-2026)

Related bill: SF4607

AI Generated Summary

Purpose

  • Clarify how employers’ reports about possible fraud related to paid leave benefits are treated under Minnesota law. The bill aims to protect legitimate, good-faith employer reports from being counted as retaliation, while making sure that false or knowingly dishonest reports can be treated as retaliation.

Main provisions

  • Adds a new subdivision (Subd. 9) to Minnesota Statutes 2024 section 268B.09, titled “Reporting fraud by employer.”
  • Key rule: If an employer makes a good-faith report to the commissioner or to law enforcement claiming that a covered individual committed fraud in connection with applying for or using paid leave benefits, that report must not be considered retaliation or interference under this statute.
  • Key rule: If an employer intentionally makes an inaccurate or false report of fraud, that report is considered retaliation or interference under this statute.

Significant changes to existing law

  • Establishes a clear distinction between good-faith fraud reports (protected from being treated as retaliation) and knowingly false reports (treated as retaliation).
  • Applies specifically to fraud connected to the application for or use of paid leave benefits.
  • Adding this safeguard to the existing retaliation framework under 268B.09 clarifies employer rights and responsibilities when reporting suspected fraud.

What this means in practice

  • Employers may report suspected fraud about paid leave benefits without fearing that a good-faith report will be treated as retaliation.
  • Employers that file false or intentionally misleading fraud reports could face consequences under the retaliation/interference provisions.

Potential impacts

  • For employers: Encourages reporting of suspected fraud when done in good faith.
  • For employees/covered individuals: Provides stronger protection against claims of retaliation when a report is made in good faith; creates potential penalties for knowingly false reports.

Relevant Terms

  • paid leave benefits
  • covered individual
  • fraud
  • good faith report
  • intentionally inaccurate report
  • retaliation or interference
  • employer
  • commissioner
  • law enforcement
  • Minnesota Statutes 2024 section 268B.09
  • Subd.9 Reporting fraud by employer

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2026HouseActionIntroduction and first reading, referred toWorkforce, Labor, and Economic Development Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds Subd. 9 to MN Statutes 2024 § 268B.09 to provide a safe harbor for good-faith fraud reports by employers concerning paid leave benefits.",
        "Specifies that intentionally inaccurate fraud reports by employers constitute retaliation or interference."
      ],
      "removed": [],
      "summary": "This bill adds Subd. 9 to Minnesota Statutes 2024 section 268B.09, establishing that an employer's good-faith report of fraud related to paid leave benefits is not considered retaliation or interference, while an intentionally inaccurate report of fraud is retaliation or interference.",
      "modified": [
        "Minnesota Statutes 2024 § 268B.09 amended by the addition of Subd. 9."
      ]
    },
    "citation": "268B.09",
    "subdivision": "Subd. 9"
  }
]

Progress through the legislative process

17%
In Committee
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