HF 6

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 07/09/2019 01:44pm

A bill for an act
relating to employment; prohibiting wage theft; modifying payment of wages;
increasing civil and criminal penalties; allowing for administrative review;
appropriating money; amending Minnesota Statutes 2018, sections 16C.285,
subdivision 3; 177.27, subdivision 2, by adding subdivisions; 177.30; 177.32,
subdivision 1; 181.03, subdivision 1, by adding subdivisions; 181.032; 181.101;
609.52, subdivisions 1, 2, 3; proposing coding for new law in Minnesota Statutes,
chapters 177; 181.

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

Section 1.

Minnesota Statutes 2018, section 16C.285, subdivision 3, is amended to read:

Subd. 3.

Minimum criteria.

"Responsible contractor" means a contractor that conforms
to the responsibility requirements in the solicitation document for its portion of the work
on the project and verifies that it meets the following minimum criteria:

(1) the contractor:

(i) is in compliance with workers' compensation and unemployment insurance
requirements;

(ii) is in compliance with Department of Revenue and Department of Employment and
Economic Development registration requirements if it has employees;

(iii) has a valid federal tax identification number or a valid Social Security number if
an individual; and

(iv) has filed a certificate of authority to transact business in Minnesota with the secretary
of state if a foreign corporation or cooperative;

(2) the contractor or related entity is in compliance with and, during the three-year period
before submitting the verification, has not violated section 177.24, 177.25, 177.41 to 177.44,
new text begin 181.03, 181.101, new text end 181.13, 181.14, or 181.722, and has not violated United States Code, title
29, sections 201 to 219, or United States Code, title 40, sections 3141 to 3148. For purposes
of this clause, a violation occurs when a contractor or related entity:

(i) repeatedly fails to pay statutorily required wages or penalties on one or more separate
projects for a total underpayment of $25,000 or more within the three-year period, provided
that a failure to pay is "repeated" only if it involves two or more separate and distinct
occurrences of underpayment during the three-year period;

(ii) has been issued an order to comply by the commissioner of labor and industry that
has become final;

(iii) has been issued at least two determination letters within the three-year period by
the Department of Transportation finding an underpayment by the contractor or related
entity to its own employees;

(iv) has been found by the commissioner of labor and industry to have repeatedly or
willfully violated any of the sections referenced in this clause pursuant to section 177.27;

(v) has been issued a ruling or findings of underpayment by the administrator of the
Wage and Hour Division of the United States Department of Labor that have become final
or have been upheld by an administrative law judge or the Administrative Review Board;
deleted text begin or
deleted text end

(vi) has been found liable for underpayment of wages or penalties or misrepresenting a
construction worker as an independent contractor in an action brought in a court having
jurisdiction new text begin ; or
new text end

new text begin (vii) has been convicted of a violation of section 609.52, subdivision 2, clause (19) new text end .

Provided that, if the contractor or related entity contests a determination of underpayment
by the Department of Transportation in a contested case proceeding, a violation does not
occur until the contested case proceeding has concluded with a determination that the
contractor or related entity underpaid wages or penalties;

(3) the contractor or related entity is in compliance with and, during the three-year period
before submitting the verification, has not violated section 181.723 or chapter 326B. For
purposes of this clause, a violation occurs when a contractor or related entity has been issued
a final administrative or licensing order;

(4) the contractor or related entity has not, more than twice during the three-year period
before submitting the verification, had a certificate of compliance under section 363A.36
revoked or suspended based on the provisions of section 363A.36, with the revocation or
suspension becoming final because it was upheld by the Office of Administrative Hearings
or was not appealed to the office;

(5) the contractor or related entity has not received a final determination assessing a
monetary sanction from the Department of Administration or Transportation for failure to
meet targeted group business, disadvantaged business enterprise, or veteran-owned business
goals, due to a lack of good faith effort, more than once during the three-year period before
submitting the verification;

(6) the contractor or related entity is not currently suspended or debarred by the federal
government or the state of Minnesota or any of its departments, commissions, agencies, or
political subdivisions that have authority to debar a contractor; and

(7) all subcontractors and motor carriers that the contractor intends to use to perform
project work have verified to the contractor through a signed statement under oath by an
owner or officer that they meet the minimum criteria listed in clauses (1) to (6).

Any violations, suspensions, revocations, or sanctions, as defined in clauses (2) to (5),
occurring prior to July 1, 2014, shall not be considered in determining whether a contractor
or related entity meets the minimum criteria.

Sec. 2.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Authority to investigate. new text end

new text begin To carry out the purposes of this chapter and chapters
181, 181A, and 184, and utilizing the enforcement authority of section 175.20, the
commissioner is authorized to enter the places of business and employment of any employer
in the state to investigate wages, hours, and other conditions and practices of work, collect
evidence, and conduct interviews. The commissioner is authorized to enter the places of
business and employment during working hours and without delay. The commissioner may
use investigation methods that include but are not limited to examination, surveillance,
transcription, copying, scanning, photographing, audio or video recording, testing, and
sampling along with taking custody of evidence. Evidence that may be collected includes
but is not limited to documents, records, books, registers, payrolls, electronically and digitally
stored information, machinery, equipment, tools, and other tangible items that in any way
relate to wages, hours, and other conditions and practices of work. The commissioner may
privately interview any individual, including owners, employers, operators, agents, workers,
and other individuals who may have knowledge of the conditions and practices of work
under investigation.
new text end

Sec. 3.

Minnesota Statutes 2018, 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 $1,000 for each failure to submit or
deliver records as required by this section new text begin , and up to $10,000 for each repeated failure new 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. 4.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Subpoenas. new text end

new text begin In order to carry out the purposes of this chapter and chapter 181,
181A, or 184, the commissioner may issue subpoenas to compel persons to appear before
the commissioner to give testimony and produce and permit inspection, copying, testing,
or sampling of documents, electronically stored information, tangible items, or other items
in the possession, custody, or control of that person that are deemed necessary or appropriate
by the commissioner. A subpoena may specify the form or format in which electronically
stored information is to be produced. Upon the application of the commissioner, a district
court shall treat the failure of any person to obey a subpoena lawfully issued by the
commissioner under this subdivision as a contempt of court.
new text end

Sec. 5.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Court orders for entrance and inspection. new text end

new text begin To carry out the purposes of this
chapter and chapters 181, 181A, and 184, and utilizing the enforcement authority of section
175.20, the commissioner is authorized to enter places of business and employment of any
employer in the state to investigate wages, hours, and other conditions and practices of
work, collect evidence, and conduct interviews. The commissioner is authorized to enter
the places of business and employment during working hours and without delay. Upon the
anticipated refusal based on a refusal to permit entrance on a prior occasion or actual refusal
of an employer, owner, operator, or agent in charge of an employer's place of business or
employment, the commissioner may apply for an order in the district court in the county in
which the place of business or employment is located, to compel an employer, owner,
operator, or agent in charge of the place of business or employment to permit the
commissioner entry to investigate wages, hours, and other conditions and practices of work,
collect evidence, and interview witnesses.
new text end

Sec. 6.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin State licensing or regulatory power. new text end

new text begin In the case of an employer which is
subject to the licensing or regulatory power of the state or any political subdivision or agency
thereof, if the commissioner issues an order to comply under subdivision 4, the commissioner
may provide the licensing or regulatory agency a copy of the order to comply. Unless the
order to comply is reversed in the course of administrative or judicial review, the order to
comply is binding on the agency and the agency may take appropriate action, including
action related to the eligibility, renewal, suspension, or revocation of a license or certificate
of public convenience and necessity if the agency is otherwise authorized to take such action.
new text end

Sec. 7.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Public contracts. new text end

new text begin In the case of an employer that is a party to a public contract,
if the commissioner issues an order to comply under subdivision 4, the commissioner may
provide a copy of the order to comply to the contract letting agency. Unless the order to
comply is reversed in the course of administrative or judicial review, an order to comply is
binding on the contract letting agency and the agency may take appropriate administrative
action, including the imposition of financial penalties and eligibility for, termination or
nonrenewal of a contract, in whole or in part, if the agency is otherwise authorized to take
the action.
new text end

Sec. 8.

Minnesota Statutes 2018, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Notice to employees of compliance orders and citations. new text end

new text begin In a compliance
order or citation issued under this chapter and chapters 181, 181A, and 184, the commissioner
may require that the provisions of a compliance order or citation setting out the violations
found by the commissioner and any subsequent document setting out the resolution of the
compliance order or citation through settlement agreement or other final disposition, upon
receipt by the employer, be made available for review by the employees of the employer
using the means the employer uses to provide other work-related notices to the employer's
employees. The means used by the employer must be at least as effective as the following
options for providing notice: (1) posting a copy of the compliance order or citation at each
location where employees perform work and where the notice must be readily observed and
easily reviewed by all employees performing work; or (2) providing a paper or electronic
copy of the compliance order or citation to employees. Each citation and proposed penalty
shall be posted or made available to employees for a minimum period of 20 days. Upon
issuance of a compliance order or citation to an employer, the commissioner may also
provide the provisions of the compliance order or citation setting out the violations found
by the commissioner and any resolution of a compliance order or citation through settlement
agreement or other final disposition to the employer's employees who may be affected by
the order or citation and how the order or citation and resolution may affect their interests.
new text end

Sec. 9.

Minnesota Statutes 2018, section 177.30, is amended to read:

177.30 KEEPING RECORDS; PENALTY.

(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record
of:

(1) the name, address, and occupation of each employee;

(2) the rate of pay, and the amount paid each pay period to each employee new text begin , including
whether each employee is paid by the hour, shift, day, week, salary, piece, commission, or
other new text end ;

(3) the hours worked each day and each workweek by the employee new text begin , including for all
employees paid at piece rate, the number of pieces completed at each piece rate new text end ;

(4) new text begin any personnel policies provided to employees;
new text end

new text begin (5) a copy of the notice provided to each employee as required by section 181.032,
paragraph (d);
new text end

new text begin (6) new text end for each employer subject to sections 177.41 to 177.44, and while performing work
on public works projects funded in whole or in part with state funds, the employer shall
furnish under oath signed by an owner or officer of an employer to the contracting authority
and the project owner every two weeks, a certified payroll report with respect to the wages
and benefits paid each employee during the preceding weeks specifying for each employee:
name; identifying number; prevailing wage master job classification; hours worked each
day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions;
net pay for week; dollars contributed per hour for each benefit, including name and address
of administrator; benefit account number; and telephone number for health and welfare,
vacation or holiday, apprenticeship training, pension, and other benefit programs; and

deleted text begin (5) deleted text end new text begin (7) new text end other information the commissioner finds necessary and appropriate to enforce
sections 177.21 to 177.435. The records must be kept for three years in deleted text begin or near deleted text end the premises
where an employee works except each employer subject to sections 177.41 to 177.44, and
while performing work on public works projects funded in whole or in part with state funds,
the records must be kept for three years after the contracting authority has made final payment
on the public works project.

(b) new text begin All records required to be kept under paragraph (a) must be readily available for
inspection by the commissioner upon demand. The records must be either kept at the place
where employees are working or kept in a manner that allows the employer to comply with
this paragraph within 24 hours.
new text end

new text begin (c) new text end The commissioner may fine an employer up to $1,000 for each failure to maintain
records as required by this section new text begin , and up to $10,000 for each repeated failure new 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.

new text begin (d) If the records maintained by the employer do not provide sufficient information to
determine the exact amount of back wages due an employee, the commissioner may make
a determination of wages due based on available evidence.
new text end

Sec. 10.

Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:

Subdivision 1.

Misdemeanors.

new text begin (a) new text end An employer who does any of the following is guilty
of a misdemeanor:

(1) hinders or delays the commissioner in the performance of duties required under
sections 177.21 to 177.435 new text begin , or chapter 181 new text end ;

(2) refuses to admit the commissioner to the place of business or employment of the
employer, as required by section 177.27, subdivision 1;

(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;

(4) falsifies any record;

(5) refuses to make any record available, or to furnish a sworn statement of the record
or any other information as required by section 177.27;

(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary
of the applicable rules as required by section 177.31;

(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
to 177.44 new text begin , or described and provided by an employer to its employees under section 181.032 new text end ;

(8) refuses to allow adequate time from work as required by section 177.253; or

(9) otherwise violates any provision of sections 177.21 to 177.44 new text begin , or commits wage theft
as described in section 181.03, subdivision 1 new text end .

new text begin Intent is not an element of a misdemeanor under this paragraph.
new text end

new text begin (b) An employer is guilty of a gross misdemeanor if the employer is found to have
intentionally retaliated against an employee for asserting rights or remedies under sections
177.21 to 177.44 or section 181.03.
new text end

Sec. 11.

new text begin [177.45] ENFORCEMENT; REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Public enforcement. new text end

new text begin In addition to the enforcement of this chapter by
the department, the attorney general may enforce this chapter under section 8.31.
new text end

new text begin Subd. 2. new text end

new text begin Remedies cumulative. new text end

new text begin The remedies provided in this chapter are cumulative
and do not restrict any remedy that is otherwise available, including remedies provided
under section 8.31. The remedies available under this section are not exclusive and are in
addition to any other requirements, rights, remedies, and penalties provided by law.
new text end

Sec. 12.

Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:

Subdivision 1.

Prohibited practices.

deleted text begin An employer may not, directly or indirectly and
with intent to defraud: deleted text end new text begin (a) No employer shall commit wage theft.
new text end

new text begin (b) For purposes of this section, wage theft is committed if:
new text end

(1) deleted text begin cause deleted text end new text begin an employer has failed to pay an employee all wages, salary, gratuities, earnings,
or commissions at the employee's rate or rates of pay or at the rate or rates required by law,
including any applicable statute, regulation, rule, ordinance, government resolution or policy,
contract, or other legal authority, whichever rate of pay is greater;
new text end

new text begin (2) an employer directly or indirectly causes new text end any employee to give a receipt for wages
for a greater amount than that actually paid to the employee for services rendered;

deleted text begin (2) deleted text end new text begin (3) an employer new text end directly or indirectly deleted text begin demand deleted text end new text begin demands new text end or deleted text begin receive deleted text end new text begin receives new text end from any
employee any rebate or refund from the wages owed the employee under contract of
employment with the employer; or

deleted text begin (3) deleted text end new text begin (4) an employer new text end in any manner deleted text begin make deleted text end new text begin makes new text end or deleted text begin attempt deleted text end new text begin attempts new text end to make it appear
that the wages paid to any employee were greater than the amount actually paid to the
employee.

Sec. 13.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin The use of an enforcement provision in this section shall not
preclude the use of any other enforcement provision provided by law.
new text end

Sec. 14.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Citations. new text end

new text begin (a) In addition to other remedies and penalties provided by this
chapter and chapter 177, the commissioner may issue a citation for a civil penalty of up to
$1,000 for any wage theft of up to $1,000 by serving the citation on the employer. The
citation may direct the employer to pay employees in a manner prescribed by the
commissioner any wages, salary, gratuities, earnings, or commissions owed to the employee
within 15 days of service of the citation on the employer. The commissioner shall serve the
citation upon the employer or the employer's authorized representative in person or by
certified mail at the employer's place of business or registered office address with the
secretary of state. The citation shall require the employer to correct the violation and cease
and desist from committing the violation.
new text end

new text begin (b) In determining the amount of the civil penalty, the commissioner shall consider the
size of the employer's business and the gravity of the violation as provided in section 14.045,
subdivision 3, paragraph (a). If the citation includes a penalty assessment, the penalty is
due and payable on the date the citation becomes final. The commissioner may vacate the
citation if the employer pays the amount of wages, salaries, commissions, earnings, and
gratuities due in the citation within five days after the citation is served on the employer.
new text end

Sec. 15.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin Within 15 days after the commissioner of labor and
industry issues a citation under subdivision 5, the employer to whom the citation is issued
may request an expedited hearing to review the citation. The request for hearing must be
in writing and must be served on the commissioner at the address specified in the citation.
If the employer does not request a hearing or if the employer's written request for hearing
is not served on the commissioner by the 15th day after the commissioner issues the citation,
the citation becomes a final order of the commissioner and is not subject to review by any
court or agency. The hearing request must state the reasons for seeking review of the citation.
The employer to whom the citation is issued and the commissioner are the parties to the
expedited hearing. The commissioner must notify the employer to whom the citation is
issued of the time and place of the hearing at least 15 days before the hearing. The hearing
shall be conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by
this section. If a hearing has been held, the commissioner shall not issue a final order until
at least five days after the date of the administrative law judge's report. Any person aggrieved
by the administrative law judge's report may, within those five days, serve written comments
to the commissioner on the report and the commissioner shall consider and enter the
comments in the record. The commissioner's final order shall comply with sections 14.61,
subdivision 2, and 14.62, subdivisions 1 and 2a, and may be appealed in the manner provided
in sections 14.63 to 14.69.
new text end

Sec. 16.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Effect on other laws. new text end

new text begin Nothing in this section shall be construed to limit the
application of other state or federal laws.
new text end

Sec. 17.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Retaliation. new text end

new text begin An employer must not retaliate against an employee for asserting
rights or remedies under this section, including but not limited to filing a complaint with
the Department of Labor and Industry or telling the employer of intention to file a complaint.
A rebuttable presumption of unlawful retaliation under this section exists whenever an
employer takes adverse action against an employee within 90 days of the employee asserting
rights or remedies under this section.
new text end

Sec. 18.

Minnesota Statutes 2018, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER new text begin ; NOTICE
TO EMPLOYEE new text end .

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statements.

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the deleted text begin hourly deleted text end rate new text begin or rates new text end of pay deleted text begin (if applicable) deleted text end new text begin and basis thereof, including whether
the employee is paid by hour, shift, day, week, salary, piece, commission, or other method new text end ;

(3) new text begin allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

new text begin (4) new text end the total number of hours worked by the employee unless exempt from chapter 177;

deleted text begin (4) deleted text end new text begin (5) new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (5) deleted text end new text begin (6) new text end a list of deductions made from the employee's pay;

deleted text begin (6) deleted text end new text begin (7) new text end the net amount of pay after all deductions are made;

deleted text begin (7) deleted text end new text begin (8) new text end the date on which the pay period ends; deleted text begin and
deleted text end

deleted text begin (8) deleted text end new text begin (9) new text end the legal name of the employer and the operating name of the employer if different
from the legal name deleted text begin . deleted text end new text begin ;
new text end

new text begin (10) the physical address of the employer's main office or principal place of business,
and a mailing address if different; and
new text end

new text begin (11) the telephone number of the employer.
new text end

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

new text begin (d) At the start of employment, an employer shall provide each employee a written notice
containing the following information:
new text end

new text begin (1) the rate or rates of pay and basis thereof, including whether the employee is paid by
the hour, shift, day, week, salary, piece, commission, or other method, and the specific
application of any additional rates;
new text end

new text begin (2) allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

new text begin (3) paid vacation, sick time, or other paid time off accruals and terms of use;
new text end

new text begin (4) the employee's employment status and whether the employee is exempt from minimum
wage, overtime, and other provisions of chapter 177, and on what basis;
new text end

new text begin (5) a list of deductions that may be made from the employee's pay;
new text end

new text begin (6) the dates on which the pay periods start and end and the regularly scheduled payday;
new text end

new text begin (7) the legal name of the employer and the operating name of the employer if different
from the legal name;
new text end

new text begin (8) the physical address of the employer's main office or principal place of business, and
a mailing address if different; and
new text end

new text begin (9) the telephone number of the employer.
new text end

new text begin (e) The employer must keep a copy of the notice under paragraph (d) signed by each
employee acknowledging receipt of the notice. The notice must be provided to each employee
in English and in the employee's native language.
new text end

new text begin (f) An employer must provide the employee any written changes to the information
contained in the notice under paragraph (d) at least seven calendar days prior to the time
the changes take effect. The changes must be signed by the employee before the changes
go into effect. The employer must keep a signed copy of all notice of changes as well as
the initial notices under paragraph (d).
new text end

Sec. 19.

Minnesota Statutes 2018, section 181.101, is amended to read:

181.101 WAGES; HOW OFTEN PAID.

(a) Except as provided in paragraph (b), every employer must pay all wages earned by
an employee at least once every deleted text begin 31 deleted text end new text begin 16 new text end days on a regular payday designated in advance by
the employer regardless of whether the employee requests payment at longer intervals.
deleted text begin Unless paid earlier, the wages earned during the first half of the first 31-day pay period
become due on the first regular payday following the first day of work. deleted text end new text begin An employer's pay
period must be no longer than 16 days. All wages earned in a pay period must be paid to
an employee within 16 days of the end of that pay period. new text end If wages earned are not paid, the
commissioner of labor and industry or the commissioner's representative may new text begin serve a new text end demand
new text begin for new text end payment on behalf of an employee. If payment is not made within deleted text begin ten deleted text end new text begin five new text end days of new text begin service
of the new text end demand, the commissioner may charge and collect the wages earned and deleted text begin a penalty deleted text end
new text begin liquidated damages new text end in the amount of the employee's average daily earnings at the new text begin employee's new text end
rate deleted text begin agreed upon in the contract of employment deleted text end new text begin or rates of pay or at the rate or rates required
by law, including any applicable statute, regulation, rule, ordinance, government resolution
or policy, contract, or other legal authority, whichever rate of pay is greater new text end deleted text begin , not exceeding
15 deleted text end deleted text begin days in all deleted text end , for each day beyond the deleted text begin ten-day deleted text end new text begin five-day new text end limit following the demand. Money
collected by the commissioner must be paid to the employee concerned. This section does
not prevent an employee from prosecuting a claim for wages. This section does not prevent
a school district, other public school entity, or other school, as defined under section 120A.22,
from paying any wages earned by its employees during a school year on regular paydays
in the manner provided by an applicable contract or collective bargaining agreement, or a
personnel policy adopted by the governing board. For purposes of this section, "employee"
includes a person who performs agricultural labor as defined in section 181.85, subdivision
2. For purposes of this section, wages are earned on the day an employee works.

(b) An employer of a volunteer firefighter, as defined in section 424A.001, subdivision
10, a member of an organized first responder squad that is formally recognized by a political
subdivision in the state, or a volunteer ambulance driver or attendant must pay all wages
earned by the volunteer firefighter, first responder, or volunteer ambulance driver or attendant
at least once every 31 days, unless the employer and the employee mutually agree upon
payment at longer intervals.

Sec. 20.

new text begin [181.1721] ENFORCEMENT; REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Public enforcement. new text end

new text begin In addition to the enforcement of this chapter by
the department, the attorney general may enforce this chapter under section 8.31.
new text end

new text begin Subd. 2. new text end

new text begin Remedies cumulative. new text end

new text begin The remedies provided in this chapter are cumulative
and do not restrict any remedy that is otherwise available, including remedies provided
under section 8.31. The remedies available under this section are not exclusive and are in
addition to any other requirements, rights, remedies, and penalties provided by law.
new text end

Sec. 21.

Minnesota Statutes 2018, section 609.52, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

In this section:

(1) "Property" means all forms of tangible property, whether real or personal, without
limitation including documents of value, electricity, gas, water, corpses, domestic animals,
dogs, pets, fowl, and heat supplied by pipe or conduit by municipalities or public utility
companies and articles, as defined in clause (4), representing trade secrets, which articles
shall be deemed for the purposes of Extra Session Laws 1967, chapter 15 to include any
trade secret represented by the article.

(2) "Movable property" is property whose physical location can be changed, including
without limitation things growing on, affixed to, or found in land.

(3) "Value" means the retail market value at the time of the theft, or if the retail market
value cannot be ascertained, the cost of replacement of the property within a reasonable
time after the theft, or in the case of a theft or the making of a copy of an article representing
a trade secret, where the retail market value or replacement cost cannot be ascertained, any
reasonable value representing the damage to the owner which the owner has suffered by
reason of losing an advantage over those who do not know of or use the trade secret. For a
check, draft, or other order for the payment of money, "value" means the amount of money
promised or ordered to be paid under the terms of the check, draft, or other order. For a
theft committed within the meaning of subdivision 2, clause (5), items (i) and (ii), if the
property has been restored to the owner, "value" means the value of the use of the property
or the damage which it sustained, whichever is greater, while the owner was deprived of
its possession, but not exceeding the value otherwise provided herein. For a theft committed
within the meaning of subdivision 2, clause (9), if the property has been restored to the
owner, "value" means the rental value of the property, determined at the rental rate contracted
by the defendant or, if no rental rate was contracted, the rental rate customarily charged by
the owner for use of the property, plus any damage that occurred to the property while the
owner was deprived of its possession, but not exceeding the total retail value of the property
at the time of rental. new text begin For a theft committed within the meaning of subdivision 2, clause (19),
"value" means the difference between wages legally required to be reported or paid to an
employee and the amount actually reported or paid to the employee.
new text end

(4) "Article" means any object, material, device or substance, including any writing,
record, recording, drawing, sample specimen, prototype, model, photograph, microorganism,
blueprint or map, or any copy of any of the foregoing.

(5) "Representing" means describing, depicting, containing, constituting, reflecting or
recording.

(6) "Trade secret" means information, including a formula, pattern, compilation, program,
device, method, technique, or process, that:

(i) derives independent economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use, and

(ii) is the subject of efforts that are reasonable under the circumstances to maintain its
secrecy.

(7) "Copy" means any facsimile, replica, photograph or other reproduction of an article,
and any note, drawing, or sketch made of or from an article while in the presence of the
article.

(8) "Property of another" includes property in which the actor is co-owner or has a lien,
pledge, bailment, or lease or other subordinate interest, property transferred by the actor in
circumstances which are known to the actor and which make the transfer fraudulent as
defined in section 513.44, property possessed pursuant to a short-term rental contract, and
property of a partnership of which the actor is a member, unless the actor and the victim
are husband and wife. It does not include property in which the actor asserts in good faith
a claim as a collection fee or commission out of property or funds recovered, or by virtue
of a lien, setoff, or counterclaim.

(9) "Services" include but are not limited to labor, professional services, transportation
services, electronic computer services, the supplying of hotel accommodations, restaurant
services, entertainment services, advertising services, telecommunication services, and the
supplying of equipment for use including rental of personal property or equipment.

(10) "Motor vehicle" means a self-propelled device for moving persons or property or
pulling implements from one place to another, whether the device is operated on land, rails,
water, or in the air.

(11) "Motor fuel" has the meaning given in section 604.15, subdivision 1.

(12) "Retailer" has the meaning given in section 604.15, subdivision 1.

Sec. 22.

Minnesota Statutes 2018, section 609.52, subdivision 2, is amended to read:

Subd. 2.

Acts constituting theft.

(a) Whoever does any of the following commits theft
and may be sentenced as provided in subdivision 3:

(1) intentionally and without claim of right takes, uses, transfers, conceals or retains
possession of movable property of another without the other's consent and with intent to
deprive the owner permanently of possession of the property; or

(2) with or without having a legal interest in movable property, intentionally and without
consent, takes the property out of the possession of a pledgee or other person having a
superior right of possession, with intent thereby to deprive the pledgee or other person
permanently of the possession of the property; or

(3) obtains for the actor or another the possession, custody, or title to property of or
performance of services by a third person by intentionally deceiving the third person with
a false representation which is known to be false, made with intent to defraud, and which
does defraud the person to whom it is made. "False representation" includes without
limitation:

(i) the issuance of a check, draft, or order for the payment of money, except a forged
check as defined in section 609.631, or the delivery of property knowing that the actor is
not entitled to draw upon the drawee therefor or to order the payment or delivery thereof;
or

(ii) a promise made with intent not to perform. Failure to perform is not evidence of
intent not to perform unless corroborated by other substantial evidence; or

(iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost
report used to establish a rate or claim for payment for medical care provided to a recipient
of medical assistance under chapter 256B, which intentionally and falsely states the costs
of or actual services provided by a vendor of medical care; or

(iv) the preparation or filing of a claim for reimbursement for providing treatment or
supplies required to be furnished to an employee under section 176.135 which intentionally
and falsely states the costs of or actual treatment or supplies provided; or

(v) the preparation or filing of a claim for reimbursement for providing treatment or
supplies required to be furnished to an employee under section 176.135 for treatment or
supplies that the provider knew were medically unnecessary, inappropriate, or excessive;
or

(4) by swindling, whether by artifice, trick, device, or any other means, obtains property
or services from another person; or

(5) intentionally commits any of the acts listed in this subdivision but with intent to
exercise temporary control only and:

(i) the control exercised manifests an indifference to the rights of the owner or the
restoration of the property to the owner; or

(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim;
or

(iii) the actor intends to restore the property only on condition that the owner pay a
reward or buy back or make other compensation; or

(6) finds lost property and, knowing or having reasonable means of ascertaining the true
owner, appropriates it to the finder's own use or to that of another not entitled thereto without
first having made reasonable effort to find the owner and offer and surrender the property
to the owner; or

(7) intentionally obtains property or services, offered upon the deposit of a sum of money
or tokens in a coin or token operated machine or other receptacle, without making the
required deposit or otherwise obtaining the consent of the owner; or

(8) intentionally and without claim of right converts any article representing a trade
secret, knowing it to be such, to the actor's own use or that of another person or makes a
copy of an article representing a trade secret, knowing it to be such, and intentionally and
without claim of right converts the same to the actor's own use or that of another person. It
shall be a complete defense to any prosecution under this clause for the defendant to show
that information comprising the trade secret was rightfully known or available to the
defendant from a source other than the owner of the trade secret; or

(9) leases or rents personal property under a written instrument and who:

(i) with intent to place the property beyond the control of the lessor conceals or aids or
abets the concealment of the property or any part thereof; or

(ii) sells, conveys, or encumbers the property or any part thereof without the written
consent of the lessor, without informing the person to whom the lessee sells, conveys, or
encumbers that the same is subject to such lease or rental contract with intent to deprive the
lessor of possession thereof; or

(iii) does not return the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the
property; or

(iv) returns the property to the lessor at the end of the lease or rental term, plus
agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the
written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.

For the purposes of items (iii) and (iv), the value of the property must be at least $100.

Evidence that a lessee used a false, fictitious, or not current name, address, or place of
employment in obtaining the property or fails or refuses to return the property or pay the
rental contract charges to lessor within five days after written demand for the return has
been served personally in the manner provided for service of process of a civil action or
sent by certified mail to the last known address of the lessee, whichever shall occur later,
shall be evidence of intent to violate this clause. Service by certified mail shall be deemed
to be complete upon deposit in the United States mail of such demand, postpaid and addressed
to the person at the address for the person set forth in the lease or rental agreement, or, in
the absence of the address, to the person's last known place of residence; or

(10) alters, removes, or obliterates numbers or symbols placed on movable property for
purpose of identification by the owner or person who has legal custody or right to possession
thereof with the intent to prevent identification, if the person who alters, removes, or
obliterates the numbers or symbols is not the owner and does not have the permission of
the owner to make the alteration, removal, or obliteration; or

(11) with the intent to prevent the identification of property involved, so as to deprive
the rightful owner of possession thereof, alters or removes any permanent serial number,
permanent distinguishing number or manufacturer's identification number on personal
property or possesses, sells or buys any personal property knowing or having reason to
know that the permanent serial number, permanent distinguishing number or manufacturer's
identification number has been removed or altered; or

(12) intentionally deprives another of a lawful charge for cable television service by:

(i) making or using or attempting to make or use an unauthorized external connection
outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or
other connection; or by

(ii) attaching any unauthorized device to any cable, wire, microwave, or other component
of a licensed cable communications system as defined in chapter 238. Nothing herein shall
be construed to prohibit the electronic video rerecording of program material transmitted
on the cable communications system by a subscriber for fair use as defined by Public Law
94-553, section 107; or

(13) except as provided in clauses (12) and (14), obtains the services of another with
the intention of receiving those services without making the agreed or reasonably expected
payment of money or other consideration; or

(14) intentionally deprives another of a lawful charge for telecommunications service
by:

(i) making, using, or attempting to make or use an unauthorized connection whether
physical, electrical, by wire, microwave, radio, or other means to a component of a local
telecommunication system as provided in chapter 237; or

(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other
component of a local telecommunication system as provided in chapter 237.

The existence of an unauthorized connection is prima facie evidence that the occupier
of the premises:

(A) made or was aware of the connection; and

(B) was aware that the connection was unauthorized;

(15) with intent to defraud, diverts corporate property other than in accordance with
general business purposes or for purposes other than those specified in the corporation's
articles of incorporation; or

(16) with intent to defraud, authorizes or causes a corporation to make a distribution in
violation of section 302A.551, or any other state law in conformity with it; or

(17) takes or drives a motor vehicle without the consent of the owner or an authorized
agent of the owner, knowing or having reason to know that the owner or an authorized agent
of the owner did not give consent; or

(18) intentionally, and without claim of right, takes motor fuel from a retailer without
the retailer's consent and with intent to deprive the retailer permanently of possession of
the fuel by driving a motor vehicle from the premises of the retailer without having paid
for the fuel dispensed into the vehicle deleted text begin . deleted text end new text begin ; or
new text end

new text begin (19) intentionally engages in or authorizes a prohibited practice of wage theft as described
in section 181.03, subdivision 1.
new text end

(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove
the vehicle from the premises of the retailer without having paid for the fuel permits the
factfinder to infer that the driver acted intentionally and without claim of right, and that the
driver intended to deprive the retailer permanently of possession of the fuel. This paragraph
does not apply if: (1) payment has been made to the retailer within 30 days of the receipt
of notice of nonpayment under section 604.15; or (2) a written notice as described in section
604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not
apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been
reported stolen before the theft of the fuel.

Sec. 23.

Minnesota Statutes 2018, section 609.52, subdivision 3, is amended to read:

Subd. 3.

Sentence.

Whoever commits theft may be sentenced as follows:

(1) to imprisonment for not more than 20 years or to payment of a fine of not more than
$100,000, or both, if the property is a firearm, or the value of the property or services stolen
is more than $35,000 and the conviction is for a violation of subdivision 2, clause (3), (4),
(15), deleted text begin or deleted text end (16), new text begin or (19), new text end or section 609.2335, subdivision 1, clause (1) or (2), item (i); or

(2) to imprisonment for not more than ten years or to payment of a fine of not more than
$20,000, or both, if the value of the property or services stolen exceeds $5,000, or if the
property stolen was an article representing a trade secret, an explosive or incendiary device,
or a controlled substance listed in Schedule I or II pursuant to section 152.02 with the
exception of marijuana; or

(3) to imprisonment for not more than five years or to payment of a fine of not more
than $10,000, or both, if any of the following circumstances exist:

(a) the value of the property or services stolen is more than $1,000 but not more than
$5,000; or

(b) the property stolen was a controlled substance listed in Schedule III, IV, or V pursuant
to section 152.02; or

(c) the value of the property or services stolen is more than $500 but not more than
$1,000 and the person has been convicted within the preceding five years for an offense
under this section, section 256.98; 268.182; 609.24; 609.245; 609.53; 609.582, subdivision
1, 2, or 3; 609.625; 609.63; 609.631; or 609.821, or a statute from another state, the United
States, or a foreign jurisdiction, in conformity with any of those sections, and the person
received a felony or gross misdemeanor sentence for the offense, or a sentence that was
stayed under section 609.135 if the offense to which a plea was entered would allow
imposition of a felony or gross misdemeanor sentence; or

(d) the value of the property or services stolen is not more than $1,000, and any of the
following circumstances exist:

(i) the property is taken from the person of another or from a corpse, or grave or coffin
containing a corpse; or

(ii) the property is a record of a court or officer, or a writing, instrument or record kept,
filed or deposited according to law with or in the keeping of any public officer or office; or

(iii) the property is taken from a burning, abandoned, or vacant building or upon its
removal therefrom, or from an area of destruction caused by civil disaster, riot, bombing,
or the proximity of battle; or

(iv) the property consists of public funds belonging to the state or to any political
subdivision or agency thereof; or

(v) the property stolen is a motor vehicle; or

(4) to imprisonment for not more than one year or to payment of a fine of not more than
$3,000, or both, if the value of the property or services stolen is more than $500 but not
more than $1,000; or

(5) in all other cases where the value of the property or services stolen is $500 or less,
to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000,
or both, provided, however, in any prosecution under subdivision 2, clauses (1), (2), (3),
(4), and (13), the value of the money or property or services received by the defendant in
violation of any one or more of the above provisions within any six-month period may be
aggregated and the defendant charged accordingly in applying the provisions of this
subdivision; provided that when two or more offenses are committed by the same person
in two or more counties, the accused may be prosecuted in any county in which one of the
offenses was committed for all of the offenses aggregated under this paragraph.

Sec. 24. new text begin APPROPRIATION.
new text end

new text begin (a) $2,046,000 in fiscal year 2020 and $2,046,000 in fiscal year 2021 are appropriated
from the general fund to the commissioner of labor and industry to address wage theft.
new text end

new text begin (b) $654,000 in fiscal year 2020 and $654,000 in fiscal year 2021 are appropriated from
the general fund to the attorney general to address wage theft.
new text end

new text begin (c) If an appropriation in this act is enacted more than once in the 2019 legislative session,
the appropriation must be given effect only once.
new text end