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SF2361 (Legislative Session 94 (2025-2026))

Employer misrepresentation and misconduct penalties increasement provision

Related bill: HF2145

AI Generated Summary

Purpose of the Bill

The bill aims to increase penalties for employers in Minnesota who engage in misrepresentation and misconduct regarding unemployment benefits and the classification of employees. It strengthens enforcement to ensure fair treatment of workers and proper payment of benefits.

Main Provisions

  • Increased Penalties for Misconduct: The bill increases penalties for employers who make false statements or fail to disclose important information that affects unemployment benefits.
  • Penalties for Misclassification of Employees: Employers who incorrectly classify a worker as an independent contractor instead of an employee could face a penalty of up to $10,000 per affected individual.
  • Collusion with Applicants: Any employer involved in helping an applicant fraudulently receive unemployment benefits will be penalized.
  • Subpoena Compliance: Employers who fail or refuse to comply with a subpoena related to unemployment benefits will receive a fine and have to cover enforcement costs.

Significant Changes to Existing Law

  • Penalty Adjustments: The penalties for employer misrepresentation are being increased. It was previously the greater of $500 or 50% of the improperly received benefits, and now can be the greater of $500 or 100%.
  • Additional Penalties for Employee Misclassification: A provision introduces a significant penalty of up to $10,000 for employee misclassification.
  • Enforcement and Collection: Penalties are payable within 30 days and the rules expand the process for appeal and collection, ensuring strict adherence to compliance.

Relevant Terms

employee misclassification, unemployment benefits, employer penalties, collusion, subpoena compliance, labor law enforcement.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subsection clarifying penalties for failing to honor a subpoena."
      ],
      "removed": [],
      "summary": "This bill amends penalties related to employer misrepresentation under section 268.184.",
      "modified": [
        "Increases existing penalties from 50% to 100% for certain violations."
      ]
    },
    "citation": "268.184"
  },
  {
    "analysis": {
      "added": [
        "Refers to costs including attorney fees related to enforcement."
      ],
      "removed": [],
      "summary": "This bill references the enforcement of subpoenas under section 268.188.",
      "modified": []
    },
    "citation": "268.188"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill mentions penalties that are in addition to those under section 268.047.",
      "modified": [
        "Specifies collection procedures and payment timelines for penalties."
      ]
    },
    "citation": "268.047"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill outlines appeal procedures in accordance with section 268.105.",
      "modified": [
        "Aligns appeal proceedings with procedures described in section 268.105."
      ]
    },
    "citation": "268.105"
  },
  {
    "analysis": {
      "added": [
        "Introduces an additional penalty of up to $10,000 for misclassification."
      ],
      "removed": [],
      "summary": "This bill adds penalties for failure to classify employees correctly as per Minnesota Rules 5200.0221.",
      "modified": []
    },
    "citation": "5200.0221"
  }
]

Sponsors