SF4130
Employers permission to request a refund of special assessments for employee training
Legislative Session 94 (2025-2026)
AI Generated Summary
Purpose
To provide a mechanism for small employers to receive refunds of certain workforce development assessments they paid, with the goal of encouraging investment in training for Minnesota employees.
Main Provisions
- Adds a new subdivision to Minnesota Statutes 2024 section 116L.20.
- Eligible employers: those with 100 or fewer employees.
- Refund option: eligible employers may annually request from the commissioner a refund of the special assessment amounts the employer paid into the workforce development fund.
- Use of refunds: refunds must be used for training of employees, specifically to upskill current entry-level employees or to provide training that leads to a higher salary or greater opportunities for career advancement with the employer.
- Geographic scope of training: refunds may only be used to train Minnesota employees.
- Reporting requirement: by January 15, 2027, and each January 15 thereafter, the commissioner must provide a report to the chairs and ranking minority members of the relevant Senate and House committees. The report must include:
- the current balance in the workforce development fund; and
- for the previous calendar year, the total amount of special assessments collected and the total amount refunded to employers under this subdivision.
How it Works
- An eligible small employer applies for a refund of the special assessments paid into the workforce development fund.
- If approved, the refunded funds must be used exclusively for employee training as described above.
- The program requires annual financial reporting to legislative leadership, tracking both fund balance and the flow of refunds.
Significance / Changes to Law
- Creates a new refund option for small employers (≤100 employees) tied to the workforce development fund.
- Directly ties refunds to concrete training outcomes (upskilling, salary increases, or career advancement) for Minnesota workers.
- Establishes an ongoing public reporting requirement to monitor fund status and the impact of refunds.
Relevant Terms - workforce development fund - special assessment - employer refunds - employee training - upskill - entry-level employees - salary increase - career advancement - Minnesota employees - commissioner - chairs and ranking minority members - committees with jurisdiction over workforce development
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 04, 2026 | Senate | Action | Introduction and first reading | ||
| March 04, 2026 | Senate | Action | Referred to | Jobs and Economic Development |
Citations
[
{
"analysis": {
"added": [
"Subd.3 Employer workforce training refunds providing refunds to eligible small employers (≤100 employees) for special assessments paid into the workforce development fund.",
"Refunds must be used to train Minnesota employees, specifically for upskilling and career advancement.",
"Annual reporting requirement by the commissioner by January 15 following each calendar year detailing the fund balance and total refunds."
],
"removed": [],
"summary": "This bill adds Subdivision 3 to Minn. Stat. §116L.20 to authorize an employer workforce training refund program. It allows a small employer (100 or fewer employees) to annually request a refund of the special assessments paid into the workforce development fund, with refunds to be used for employee training and upskilling, and with reporting requirements to the Legislature.",
"modified": [
"Minn. Stat. §116L.20 is amended to add Subd.3."
]
},
"citation": "116L.20",
"subdivision": "subd.3"
}
]Progress through the legislative process
In Committee