HF 2146

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/10/2025 02:46 p.m.

A bill for an act
relating to employment; requiring annual reports from partnership entities of the
Intergovernmental Misclassification Enforcement and Education Partnership;
appropriating money; amending Minnesota Statutes 2024, section 181.725, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 181.725, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Misclassification rates; partnership entity annual reporting. new text end

new text begin (a) Beginning
March 1, 2026, and each March 1 thereafter, each partnership entity must report to the chairs
and ranking minority members of the legislative committees with jurisdiction over labor
the following information:
new text end

new text begin (1) an estimate of the number of workers experiencing misclassification;
new text end

new text begin (2) an estimate of the cost of misclassification to impacted workers;
new text end

new text begin (3) an estimate of impact on law-abiding competitors of employers that have misclassified
employees; and
new text end

new text begin (4) an estimate of misclassification by industry to help guide partnership enforcement
priorities.
new text end

new text begin (b) Based on the estimated misclassification rates and information required under
paragraph (a), the following must also be included with the reports under paragraph (a):
new text end

new text begin (1) from the Department of Employment and Economic Development, an estimate of
the impact to:
new text end

new text begin (i) the unemployment insurance trust fund;
new text end

new text begin (ii) the family and medical benefit insurance account; and
new text end

new text begin (iii) the tax and premium rates for those programs, as applicable;
new text end

new text begin (2) from the Department of Revenue, an estimate of the impact to:
new text end

new text begin (i) income tax collection; and
new text end

new text begin (ii) other government programs; and
new text end

new text begin (3) from the Department of Labor and Industry, an estimate of the impact to:
new text end

new text begin (i) the workers' compensation fund; and
new text end

new text begin (ii) workers' compensation insurance rates.
new text end

Sec. 2. new text begin APPROPRIATIONS; MISCLASSIFICATION FRAUD ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin (a) $....... in fiscal year 2026 and $....... in fiscal year
2027 are appropriated from the general fund to the commissioner of labor and industry for
misclassification fraud analysis.
new text end

new text begin (b) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of revenue for misclassification fraud analysis.
new text end

new text begin (c) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of employment and economic development for
misclassification fraud analysis.
new text end

new text begin (d) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of commerce for misclassification fraud analysis.
new text end

new text begin (e) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the attorney general for misclassification fraud analysis.
new text end

new text begin Subd. 2. new text end

new text begin Use of money. new text end

new text begin Money appropriated under this section must be used for costs
associated with estimating misclassification fraud rates and analyzing impacts to programs
and funds overseen by the respective agencies that may be impacted by misclassification
fraud as required under Minnesota Statutes, section 181.725, subdivision 4b.
new text end