HF 19

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 01/26/2023 04:39pm

A bill for an act
relating to employment; providing for earned sick and safe time; requiring a report;
authorizing rulemaking; appropriating money; amending Minnesota Statutes 2022,
sections 177.27, subdivisions 2, 4, 7; 181.942, subdivision 1; 181.9436; 181.944;
proposing coding for new law in Minnesota Statutes, chapters 177; 181; repealing
Minnesota Statutes 2022, section 181.9413.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

EARNED SICK AND SAFE TIME

Section 1.

Minnesota Statutes 2022, section 181.942, subdivision 1, is amended to read:

Subdivision 1.

Comparable position.

(a) An employee returning from a leave of absence
under section 181.941 is entitled to return to employment in the employee's former position
or in a position of comparable duties, number of hours, and pay. An employee returning
from a leave of absence longer than one month must notify a supervisor at least two weeks
prior to return from leave. An employee returning from a leave under section 181.9412 or
deleted text begin 181.9413 deleted text end new text begin sections 181.9445 to 181.9448 new text end is entitled to return to employment in the employee's
former position.

(b) If, during a leave under sections 181.940 to 181.944, the employer experiences a
layoff and the employee would have lost a position had the employee not been on leave,
pursuant to the good faith operation of a bona fide layoff and recall system, including a
system under a collective bargaining agreement, the employee is not entitled to reinstatement
in the former or comparable position. In such circumstances, the employee retains all rights
under the layoff and recall system, including a system under a collective bargaining
agreement, as if the employee had not taken the leave.

Sec. 2.

Minnesota Statutes 2022, section 181.9436, is amended to read:

181.9436 POSTING OF LAW.

The Division of Labor Standards and Apprenticeship shall develop, with the assistance
of interested business and community organizations, an educational poster stating employees'
rights under sections 181.940 to deleted text begin 181.9436 deleted text end new text begin 181.9448 new text end . The department shall make the poster
available, upon request, to employers for posting on the employer's premises.

Sec. 3.

new text begin [181.9445] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of section 177.50 and sections 181.9445
to 181.9448, the terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and industry
or authorized designee or representative.
new text end

new text begin Subd. 3. new text end

new text begin Domestic abuse. new text end

new text begin "Domestic abuse" has the meaning given in section 518B.01.
new text end

new text begin Subd. 4. new text end

new text begin Earned sick and safe time. new text end

new text begin "Earned sick and safe time" means leave, including
paid time off and other paid leave systems, that is paid at the same hourly rate as an employee
earns from employment that may be used for the same purposes and under the same
conditions as provided under section 181.9447, but in no case shall this hourly rate be less
than that provided under section 177.24 or an applicable local minimum wage.
new text end

new text begin Subd. 5. new text end

new text begin Employee. new text end

new text begin "Employee" means any person who is employed by an employer,
including temporary and part-time employees, who performs work for at least 80 hours in
a year for that employer in Minnesota. Employee does not include an independent contractor.
new text end

new text begin Subd. 6. new text end

new text begin Employer. new text end

new text begin "Employer" means a person who has one or more employees.
Employer includes an individual, a corporation, a partnership, an association, a business
trust, a nonprofit organization, a group of persons, the state of Minnesota, a county, town,
city, school district, or other governmental subdivision. In the event that a temporary
employee is supplied by a staffing agency, absent a contractual agreement stating otherwise,
that individual shall be an employee of the staffing agency for all purposes of section 177.50
and sections 181.9445 to 181.9448. Employer does not include the United States government.
new text end

new text begin Subd. 7. new text end

new text begin Family member. new text end

new text begin "Family member" means:
new text end

new text begin (1) an employee's:
new text end

new text begin (i) child, foster child, adult child, legal ward, child for whom the employee is legal
guardian, or child to whom the employee stands or stood in loco parentis;
new text end

new text begin (ii) spouse or registered domestic partner;
new text end

new text begin (iii) sibling, stepsibling, or foster sibling;
new text end

new text begin (iv) biological, adoptive, or foster parent, stepparent, or a person who stood in loco
parentis when the employee was a minor child;
new text end

new text begin (v) grandchild, foster grandchild, or stepgrandchild;
new text end

new text begin (vi) grandparent or stepgrandparent;
new text end

new text begin (vii) a child of a sibling of the employee;
new text end

new text begin (viii) a sibling of the parents of the employee; or
new text end

new text begin (ix) a child-in-law or sibling-in-law;
new text end

new text begin (2) any of the family members listed in clause (1) of a spouse or registered domestic
partner;
new text end

new text begin (3) any other individual related by blood or whose close association with the employee
is the equivalent of a family relationship; and
new text end

new text begin (4) up to one individual annually designated by the employee.
new text end

new text begin Subd. 8. new text end

new text begin Health care professional. new text end

new text begin "Health care professional" means any person licensed,
certified, or otherwise authorized under federal or state law to provide medical or emergency
services, including doctors, physician assistants, nurses, advanced practice registered nurses,
mental health professionals, and emergency room personnel.
new text end

new text begin Subd. 9. new text end

new text begin Prevailing wage rate. new text end

new text begin "Prevailing wage rate" has the meaning given in section
177.42 and as calculated by the Department of Labor and Industry.
new text end

new text begin Subd. 10. new text end

new text begin Sexual assault. new text end

new text begin "Sexual assault" means an act that constitutes a violation
under sections 609.342 to 609.3453 or 609.352.
new text end

new text begin Subd. 11. new text end

new text begin Stalking. new text end

new text begin "Stalking" has the meaning given in section 609.749.
new text end

new text begin Subd. 12. new text end

new text begin Year. new text end

new text begin "Year" means a regular and consecutive 12-month period, as determined
by an employer and clearly communicated to each employee of that employer.
new text end

Sec. 4.

new text begin [181.9446] ACCRUAL OF EARNED SICK AND SAFE TIME.
new text end

new text begin (a) An employee accrues a minimum of one hour of earned sick and safe time for every
30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year.
Employees may not accrue more than 48 hours of earned sick and safe time in a year unless
the employer agrees to a higher amount.
new text end

new text begin (b)(1) Except as provided in clause (2), employers must permit an employee to carry
over accrued but unused sick and safe time into the following year. The total amount of
accrued but unused earned sick and safe time for an employee must not exceed 80 hours at
any time, unless an employer agrees to a higher amount.
new text end

new text begin (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the
following year as provided under clause (1), an employer may pay an employee for accrued
but unused sick and safe time at the end of a year at the same hourly rate as an employee
earns from employment, provided that the employer provides an employee with the maximum
annual accrual of earned sick and safe time for the year that meets or exceeds the
requirements of this section that is available for the employee's immediate use at the
beginning of the subsequent year. In no case shall this hourly rate be less than that provided
under section 177.24 or an applicable local minimum wage.
new text end

new text begin (c) Employees who are exempt from overtime requirements under United States Code,
title 29, section 213(a)(1), as amended through the effective date of this section, are deemed
to work 40 hours in each workweek for purposes of accruing earned sick and safe time,
except that an employee whose normal workweek is less than 40 hours will accrue earned
sick and safe time based on the normal workweek.
new text end

new text begin (d) Earned sick and safe time under this section begins to accrue at the commencement
of employment of the employee.
new text end

new text begin (e) Employees may use earned sick and safe time as it is accrued.
new text end

Sec. 5.

new text begin [181.9447] USE OF EARNED SICK AND SAFE TIME.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible use. new text end

new text begin An employee may use accrued earned sick and safe time
for:
new text end

new text begin (1) an employee's:
new text end

new text begin (i) mental or physical illness, injury, or other health condition;
new text end

new text begin (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury,
or health condition; or
new text end

new text begin (iii) need for preventive medical or health care;
new text end

new text begin (2) care of a family member:
new text end

new text begin (i) with a mental or physical illness, injury, or other health condition;
new text end

new text begin (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness,
injury, or other health condition; or
new text end

new text begin (iii) who needs preventive medical or health care;
new text end

new text begin (3) absence due to domestic abuse, sexual assault, or stalking of the employee or
employee's family member, provided the absence is to:
new text end

new text begin (i) seek medical attention related to physical or psychological injury or disability caused
by domestic abuse, sexual assault, or stalking;
new text end

new text begin (ii) obtain services from a victim services organization;
new text end

new text begin (iii) obtain psychological or other counseling;
new text end

new text begin (iv) seek relocation or take steps to secure an existing home due to domestic abuse,
sexual assault, or stalking; or
new text end

new text begin (v) seek legal advice or take legal action, including preparing for or participating in any
civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault,
or stalking;
new text end

new text begin (4) closure of the employee's place of business due to weather or other public emergency
or an employee's need to care for a family member whose school or place of care has been
closed due to weather or other public emergency;
new text end

new text begin (5) the employee's inability to work or telework because the employee is: (i) prohibited
from working by the employer due to health concerns related to the potential transmission
of a communicable illness related to a public emergency; or (ii) seeking or awaiting the
results of a diagnostic test for, or a medical diagnosis of, a communicable disease related
to a public emergency and such employee has been exposed to a communicable disease or
the employee's employer has requested a test or diagnosis; and
new text end

new text begin (6) when it has been determined by the health authorities having jurisdiction or by a
health care professional that the presence of the employee or family member of the employee
in the community would jeopardize the health of others because of the exposure of the
employee or family member of the employee to a communicable disease, whether or not
the employee or family member has actually contracted the communicable disease.
new text end

new text begin For the purposes of this subdivision, a public emergency shall include a declared
emergency as defined in section 12.03 or a declared local emergency under section 12.29.
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin An employer may require notice of the need for use of earned sick and
safe time as provided in this paragraph. If the need for use is foreseeable, an employer may
require advance notice of the intention to use earned sick and safe time but must not require
more than seven days' advance notice. If the need is unforeseeable, an employer may require
an employee to give notice of the need for earned sick and safe time as soon as practicable.
An employer that requires notice of the need to use earned sick and safe time in accordance
with this subdivision shall have a written policy containing reasonable procedures for
employees to provide notice of the need to use earned sick and safe time, and shall provide
a written copy of such policy to employees. If a copy of the written policy has not been
provided to an employee, an employer shall not deny the use of earned sick and safe time
to the employee on that basis.
new text end

new text begin Subd. 3. new text end

new text begin Documentation. new text end

new text begin (a) When an employee uses earned sick and safe time for
more than three consecutive days, an employer may require reasonable documentation that
the earned sick and safe time is covered by subdivision 1.
new text end

new text begin (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6),
reasonable documentation may include a signed statement by a health care professional
indicating the need for use of earned sick and safe time. However, if the employee or
employee's family member did not receive services from a health care professional, or if
documentation cannot be obtained from a health care professional in a reasonable time or
without added expense, then reasonable documentation for the purposes of this paragraph
may include a written statement from the employee indicating that the employee is using
or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause
(1), (2), (5), or (6).
new text end

new text begin (c) For earned sick and safe time under subdivision 1, clause (3), an employer must
accept a court record or documentation signed by a volunteer or employee of a victims
services organization, an attorney, a police officer, or an antiviolence counselor as reasonable
documentation.
new text end

new text begin (d) For earned sick and safe time to care for a family member under subdivision 1, clause
(4), an employer must accept as reasonable documentation a written statement from the
employee indicating that the employee is using or used earned sick and safe time for a
qualifying purpose as reasonable documentation.
new text end

new text begin (e) An employer must not require disclosure of details relating to domestic abuse, sexual
assault, or stalking or the details of an employee's or an employee's family member's medical
condition as related to an employee's request to use earned sick and safe time under this
section.
new text end

new text begin (f) Written statements by an employee may be written in the employee's first language
and need not be notarized or in any particular format.
new text end

new text begin Subd. 4. new text end

new text begin Replacement worker. new text end

new text begin An employer may not require, as a condition of an
employee using earned sick and safe time, that the employee seek or find a replacement
worker to cover the hours the employee uses as earned sick and safe time.
new text end

new text begin Subd. 5. new text end

new text begin Increment of time used. new text end

new text begin Earned sick and safe time may be used in the smallest
increment of time tracked by the employer's payroll system, provided such increment is not
more than four hours.
new text end

new text begin Subd. 6. new text end

new text begin Retaliation prohibited. new text end

new text begin (a) An employer shall not discharge, discipline, penalize,
interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against a
person because the person has exercised or attempted to exercise rights protected under this
act, including but not limited to because the person requested earned sick and safe time,
used earned sick and safe time, requested a statement of accrued sick and safe time, informed
any person of his or her potential rights under sections 181.9445 to 181.9448, made a
complaint or filed an action to enforce a right to earned sick and safe time under this section,
or is or was participating in any manner in an investigation, proceeding, or hearing under
this chapter.
new text end

new text begin (b) It shall be unlawful for an employer's absence control policy or attendance point
system to count earned sick and safe time taken under this act as an absence that may lead
to or result in a retaliatory personnel action or any other adverse action.
new text end

new text begin (c) It shall be unlawful for an employer or any other person to report or threaten to report
the actual or suspected citizenship or immigration status of a person or their family member
to a federal, state, or local agency for exercising or attempting to exercise any right protected
under this act.
new text end

new text begin (d) A person need not explicitly refer to this act or the rights enumerated herein to be
protected from retaliatory personnel actions.
new text end

new text begin Subd. 7. new text end

new text begin Pay and benefits. new text end

new text begin (a) During any use of earned sick and safe time, the employer
must maintain coverage under any group insurance policy, group subscriber contract, or
health care plan for the employee and any dependents, as if the employee was not using
earned sick and safe time, provided, however, that the employee must continue to pay any
employee share of the cost of such benefits.
new text end

new text begin (b) An employee returning from a leave under this section is entitled to return to
employment at the same rate of pay the employee had been receiving when the leave
commenced, plus any automatic adjustments in the employee's pay scale that occurred
during the leave period. The employee returning from a leave is entitled to retain all accrued
preleave benefits of employment and seniority as if there had been no interruption in service,
provided that nothing under this section prevents the accrual of benefits or seniority during
the leave pursuant to a collective bargaining or other agreement between the employer and
employees.
new text end

new text begin Subd. 8. new text end

new text begin Part-time return from leave. new text end

new text begin An employee, by agreement with the employer,
may return to work part time during the leave period without forfeiting the right to return
to employment at the end of the leave, as provided under this section.
new text end

new text begin Subd. 9. new text end

new text begin Notice and posting by employer. new text end

new text begin (a) Employers must give notice to all
employees that they are entitled to earned sick and safe time, including the amount of earned
sick and safe time, the accrual year for the employee, the terms of its use under this section,
and a copy of the written policy for providing notice as provided under subdivision 2; that
retaliatory personnel actions against employees who request or use earned sick and safe
time are prohibited; and that each employee has the right to file a complaint or bring a civil
action if earned sick and safe time is denied by the employer or the employee is retaliated
against for requesting or using earned sick and safe time.
new text end

new text begin (b) Employers must supply employees with a notice in English and the primary language
of the employee, as identified by the employee, that contains the information required in
paragraph (a) at commencement of employment or the effective date of this section,
whichever is later.
new text end

new text begin (c) The means used by the employer must be at least as effective as the following options
for providing notice:
new text end

new text begin (1) posting a copy of the notice at each location where employees perform work and
where the notice must be readily observed and easily reviewed by all employees performing
work;
new text end

new text begin (2) providing a paper or electronic copy of the notice to employees; or
new text end

new text begin (3) a conspicuous posting in a web-based or app-based platform through which an
employee performs work.
new text end

new text begin The notice must contain all information required under paragraph (a).
new text end

new text begin (d) An employer that provides an employee handbook to its employees must include in
the handbook notice of employee rights and remedies under this section.
new text end

new text begin Subd. 10. new text end

new text begin Required statement to employee. new text end

new text begin (a) Upon request of the employee, the
employer must provide, in writing or electronically, current information stating the
employee's amount of:
new text end

new text begin (1) earned sick and safe time available to the employee; and
new text end

new text begin (2) used earned sick and safe time.
new text end

new text begin (b) Employers may choose a reasonable system for providing the information in paragraph
(a), including but not limited to listing information on each pay stub or developing an online
system where employees can access their own information.
new text end

new text begin Subd. 11. new text end

new text begin Employer records. new text end

new text begin (a) Employers shall retain accurate records documenting
hours worked by employees and earned sick and safe time taken and comply with all
requirements under section 177.30.
new text end

new text begin (b) An employer must allow an employee to inspect records required by this section and
relating to that employee at a reasonable time and place.
new text end

new text begin Subd. 12. new text end

new text begin Confidentiality and nondisclosure. new text end

new text begin (a) If, in conjunction with this section,
an employer possesses:
new text end

new text begin (1) health or medical information regarding an employee or an employee's family
member;
new text end

new text begin (2) information pertaining to domestic abuse, sexual assault, or stalking;
new text end

new text begin (3) information that the employee has requested or obtained leave under this section; or
new text end

new text begin (4) any written or oral statement, documentation, record, or corroborating evidence
provided by the employee or an employee's family member, the employer must treat such
information as confidential.
new text end

new text begin Information given by an employee may only be disclosed by an employer if the disclosure
is requested or consented to by the employee, when ordered by a court or administrative
agency, or when otherwise required by federal or state law.
new text end

new text begin (b) Records and documents relating to medical certifications, recertifications, or medical
histories of employees or family members of employees created for purposes of section
177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records
separate from the usual personnel files. At the request of the employee, the employer must
destroy or return the records required by sections 181.9445 to 181.9448 that are older than
three years prior to the current calendar year.
new text end

new text begin (c) Employers may not discriminate against any employee based on records created for
the purposes of section 177.50 or sections 181.9445 to 181.9448.
new text end

Sec. 6.

new text begin [181.9448] EFFECT ON OTHER LAW OR POLICY.
new text end

new text begin Subdivision 1. new text end

new text begin No effect on more generous sick and safe time policies. new text end

new text begin (a) Nothing
in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting
or retaining earned sick and safe time policies that meet or exceed, and do not otherwise
conflict with, the minimum standards and requirements provided in sections 181.9445 to
181.9448.
new text end

new text begin (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of
parties to a collective bargaining agreement to bargain and agree with respect to earned sick
and safe time policies or to diminish the obligation of an employer to comply with any
contract, collective bargaining agreement, or any employment benefit program or plan that
meets or exceeds, and does not otherwise conflict with, the minimum standards and
requirements provided in this section.
new text end

new text begin (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or
otherwise affect the applicability of any other law, regulation, requirement, policy, or
standard that provides for a greater amount, accrual, or use by employees of paid sick and
safe time or that extends other protections to employees.
new text end

new text begin (d) Employers who provide earned sick and safe time to their employees under a paid
time off policy or other paid leave policy that may be used for the same purposes and under
the same conditions as earned sick and safe time, and that meets or exceeds, and does not
otherwise conflict with, the minimum standards and requirements provided in sections
181.9445 to 181.9448 are not required to provide additional earned sick and safe time.
new text end

new text begin (e) An employer may opt to satisfy the requirements of sections 181.9445 to 181.9448
for construction industry employees by:
new text end

new text begin (1) paying at least the prevailing wage rate as defined by section 177.42 and as calculated
by the Department of Labor and Industry; or
new text end

new text begin (2) paying at least the required rate established in a registered apprenticeship agreement
for apprentices registered with the Department of Labor and Industry.
new text end

new text begin An employer electing this option is deemed to be in compliance with sections 181.9445 to
181.9448 for construction industry employees who receive either at least the prevailing
wage rate or the rate required in the applicable apprenticeship agreement regardless of
whether the employees are working on private or public projects.
new text end

new text begin (f) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy
whereby employees may donate unused accrued sick and safe time to another employee.
new text end

new text begin (g) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and
safe time to an employee before accrual by the employee.
new text end

new text begin Subd. 2. new text end

new text begin Termination; separation; transfer. new text end

new text begin Sections 181.9445 to 181.9448 do not
require financial or other reimbursement to an employee from an employer upon the
employee's termination, resignation, retirement, or other separation from employment for
accrued earned sick and safe time that has not been used. If an employee is transferred to
a separate division, entity, or location, but remains employed by the same employer, the
employee is entitled to all earned sick and safe time accrued at the prior division, entity, or
location and is entitled to use all earned sick and safe time as provided in sections 181.9445
to 181.9448. When there is a separation from employment and the employee is rehired
within 180 days of separation by the same employer, previously accrued earned sick and
safe time that had not been used must be reinstated. An employee is entitled to use accrued
earned sick and safe time and accrue additional earned sick and safe time at the
commencement of reemployment.
new text end

new text begin Subd. 3. new text end

new text begin Employer succession. new text end

new text begin (a) When a different employer succeeds or takes the
place of an existing employer, all employees of the original employer who remain employed
by the successor employer are entitled to all earned sick and safe time accrued but not used
when employed by the original employer, and are entitled to use all earned sick and safe
time previously accrued but not used.
new text end

new text begin (b) If, at the time of transfer of the business, employees are terminated by the original
employer and hired within 30 days by the successor employer following the transfer, those
employees are entitled to all earned sick and safe time accrued but not used when employed
by the original employer, and are entitled to use all earned sick and safe time previously
accrued but not used.
new text end

Sec. 7. new text begin SEVERABILITY.
new text end

new text begin If any provision of this act or application thereof to any person or circumstance is judged
invalid, the invalidity shall not affect other provisions or applications of the act which can
be given effect without the invalid provision or application, and to this end the provisions
of this act are declared severable.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 181.9413, new text end new text begin is repealed.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective 180 days following final enactment.
new text end

ARTICLE 2

EARNED SICK AND SAFE TIME ENFORCEMENT

Section 1.

Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer
of employees working in the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of employment records which the commissioner deems
necessary or appropriate. The records which may be required include full and correct
statements in writing, including sworn statements by the employer, containing information
relating to wages, hours, names, addresses, and any other information pertaining to the
employer's employees and the conditions of their employment as the commissioner deems
necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery
or, if necessary, by personal delivery by the employer or a representative of the employer,
as authorized by the employer in writing.

The commissioner may fine the employer up to deleted text begin $1,000 deleted text end new text begin $10,000 new text end for each failure to submit
or deliver records as required by this section deleted text begin , and up to $5,000 for each repeated failure deleted text end .
This penalty is in addition to any penalties provided under section 177.32, subdivision 1.
In determining the amount of a civil penalty under this subdivision, the appropriateness of
such penalty to the size of the employer's business and the gravity of the violation shall be
considered.

Sec. 2.

Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
subdivision 2a, 181.722, 181.79, deleted text begin and deleted text end 181.939 to 181.943, new text begin and 181.9445 to 181.9448, new text end or
with any rule promulgated under section 177.28. The commissioner shall issue an order
requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any time during the two
years that preceded the date of violation, the commissioner issued an order to the employer
for violation of sections 177.41 to 177.435 and the order is final or the commissioner and
the employer have entered into a settlement agreement that required the employer to pay
back wages that were required by sections 177.41 to 177.435. The department shall serve
the order upon the employer or the employer's authorized representative in person or by
certified mail at the employer's place of business. An employer who wishes to contest the
order must file written notice of objection to the order with the commissioner within 15
calendar days after being served with the order. A contested case proceeding must then be
held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
served with the order, the employer fails to file a written notice of objection with the
commissioner, the order becomes a final order of the commissioner.

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have
violated a section identified in subdivision 4, or any rule adopted under section 177.28, and
the commissioner issues an order to comply, the commissioner shall order the employer to
cease and desist from engaging in the violative practice and to take such affirmative steps
that in the judgment of the commissioner will effectuate the purposes of the section or rule
violated. The commissioner shall order the employer to pay to the aggrieved parties back
pay, gratuities, and compensatory damages, less any amount actually paid to the employee
by the employer, and for an additional equal amount as liquidated damages. Any employer
who is found by the commissioner to have repeatedly or willfully violated a section or
sections identified in subdivision 4 shall be subject to a civil penalty of up to deleted text begin $1,000 deleted text end new text begin $10,000
new text end for each violation for each employee. In determining the amount of a civil penalty under
this subdivision, the appropriateness of such penalty to the size of the employer's business
and the gravity of the violation shall be considered. In addition, the commissioner may order
the employer to reimburse the department and the attorney general for all appropriate
litigation and hearing costs expended in preparation for and in conducting the contested
case proceeding, unless payment of costs would impose extreme financial hardship on the
employer. If the employer is able to establish extreme financial hardship, then the
commissioner may order the employer to pay a percentage of the total costs that will not
cause extreme financial hardship. Costs include but are not limited to the costs of services
rendered by the attorney general, private attorneys if engaged by the department,
administrative law judges, court reporters, and expert witnesses as well as the cost of
transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's
order from the date the order is signed by the commissioner until it is paid, at an annual rate
provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish
escrow accounts for purposes of distributing damages.

Sec. 4.

new text begin [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in section 181.9445 apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Rulemaking authority. new text end

new text begin The commissioner may adopt rules to carry out the
purposes of this section and sections 181.9445 to 181.9448.
new text end

new text begin Subd. 3. new text end

new text begin Individual remedies. new text end

new text begin An action to recover damages under section 181.944 for
violation of sections 181.9445 to 181.9448 must be commenced within three years of the
violation that caused the injury to the employee.
new text end

new text begin Subd. 4. new text end

new text begin Grants to community organizations. new text end

new text begin The commissioner may make grants to
community organizations for the purpose of outreach to and education for employees
regarding their rights under sections 181.9445 to 181.9448. The community-based
organizations must be selected based on their experience, capacity, and relationships in
high-violation industries. The work under such a grant may include the creation and
administration of a statewide worker hotline.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin (a) The commissioner must submit an annual report to
the legislature, including to the chairs and ranking minority members of any relevant
legislative committee. The report must include but is not limited to:
new text end

new text begin (1) a list of all violations of sections 181.9445 to 181.9448, including the employer
involved, and the nature of any violations; and
new text end

new text begin (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any
patterns by employer, industry, or county.
new text end

new text begin (b) A report under this section must not include an employee's name or other identifying
information, any health or medical information regarding an employee or an employee's
family member, or any information pertaining to domestic abuse, sexual assault, or stalking
of an employee or an employee's family member.
new text end

new text begin Subd. 6. new text end

new text begin Contract for labor or services. new text end

new text begin It is the responsibility of all employers to not
enter into any contract or agreement for labor or services where the employer has any actual
knowledge or knowledge arising from familiarity with the normal facts and circumstances
of the business activity engaged in, or has any additional facts or information that, taken
together, would make a reasonably prudent person undertake to inquire whether, taken
together, the contractor is not complying or has failed to comply with this section. For
purposes of this subdivision, "actual knowledge" means information obtained by the employer
that the contractor has violated this section within the past two years and has failed to present
the employer with credible evidence that such noncompliance has been cured going forward.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective 180 days after final enactment.
new text end

Sec. 5.

Minnesota Statutes 2022, section 181.944, is amended to read:

181.944 INDIVIDUAL REMEDIES.

In addition to any other remedies provided by law, a person injured by a violation of
sections 181.172, paragraph (a) or (d), deleted text begin and deleted text end 181.939 to 181.943 new text begin , and 181.9445 to 181.9448 new text end
may bring a civil action to recover any and all damages recoverable at law, together with
costs and disbursements, including reasonable attorney's fees, and may receive injunctive
and other equitable relief as determined by a court.

ARTICLE 3

EARNED SICK AND SAFE TIME APPROPRIATIONS

Section 1. new text begin EARNED SICK AND SAFE TIME APPROPRIATIONS.
new text end

new text begin (a) $1,367,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of labor and industry for enforcement and other duties regarding earned sick
and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177.
In fiscal year 2025, the base is $2,018,000. In fiscal year 2026, the base is $1,708,000.
new text end

new text begin (b) $3,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of management and budget for printing costs associated with earned sick and safe time
under Minnesota Statutes, sections 181.9445 to 181.9448. This is a onetime appropriation.
new text end

new text begin (c) $51,000 in fiscal year 2024 is appropriated from the general fund to the entities
specified in paragraph (d) to offset the cost of earned sick and safe time leave required under
this act of executive branch agencies, boards, and commissions. The base for fiscal year
2025 and beyond is $102,000.
new text end

new text begin (d) The commissioner of management and budget must determine an allocation of the
amount appropriated in paragraph (c) for each executive branch state agency, board, and
commission. Each allocation is directly appropriated to each of these entities as specified
by the commissioner.
new text end

new text begin (e) $300,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of labor and industry for grants to community organizations under Minnesota Statutes,
section 177.50, subdivision 4. In fiscal year 2025, the base is $300,000. In fiscal year 2026,
the base is $0.
new text end

new text begin (f) $18,000 in fiscal year 2024 is appropriated from the general fund to the house of
representatives to modify timecard and human resources systems as necessary to comply
with this act. This is a onetime appropriation.
new text end

new text begin (g) $1,000 in fiscal year 2024 is appropriated from the general fund to the supreme court
for purposes of this act. The base for this appropriation is $492,000 in fiscal year 2025 and
$459,000 in fiscal year 2026.
new text end

APPENDIX

Repealed Minnesota Statutes: H0019-1

181.9413 SICK LEAVE BENEFITS; CARE OF RELATIVES.

(a) An employee may use personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's child, as defined in section 181.940, subdivision 4, adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent, for reasonable periods of time as the employee's attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee's own illness or injury. This section applies only to personal sick leave benefits payable to the employee from the employer's general assets.

(b) An employee may use sick leave as allowed under this section for safety leave, whether or not the employee's employer allows use of sick leave for that purpose for such reasonable periods of time as may be necessary. Safety leave may be used for assistance to the employee or assistance to the relatives described in paragraph (a). For the purpose of this section, "safety leave" is leave for the purpose of providing or receiving assistance because of sexual assault, domestic abuse, or harassment or stalking. For the purpose of this paragraph:

(1) "domestic abuse" has the meaning given in section 518B.01;

(2) "sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453 or 609.352; and

(3) "harass" and "stalking" have the meanings given in section 609.749.

(c) An employer may limit the use of safety leave as described in paragraph (b) or personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent to no less than 160 hours in any 12-month period. This paragraph does not apply to absences due to the illness or injury of a child, as defined in section 181.940, subdivision 4.

(d) For purposes of this section, "personal sick leave benefits" means time accrued and available to an employee to be used as a result of absence from work due to personal illness or injury, but does not include short-term or long-term disability or other salary continuation benefits.

(e) For the purpose of this section, "child" includes a stepchild and a biological, adopted, and foster child.

(f) For the purpose of this section, "grandchild" includes a step-grandchild, and a biological, adopted, and foster grandchild.

(g) This section does not prevent an employer from providing greater sick leave benefits than are provided for under this section.

(h) An employer shall not retaliate against an employee for requesting or obtaining a leave of absence under this section.