HF 580

as introduced - 89th Legislature (2015 - 2016) Posted on 03/02/2015 04:13pm

A bill for an act
relating to employment; providing for pregnancy, parenting, and caregiver
insurance benefits; modifying leave; appropriating money; amending Minnesota
Statutes 2014, sections 181.940; 181.941; 181.943; 181.9436; 290.01, subdivision
19b; proposing coding for new law in Minnesota Statutes, chapter 181.

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

Section 1.

Minnesota Statutes 2014, section 181.940, is amended to read:

181.940 DEFINITIONS.

Subdivision 1.

Scope.

For the purposes of sections 181.940 to 181.944, the terms
defined in this section have the meanings given them.

Subd. 2.

Employee.

"Employee" means a person who performs services for hire for
an individual employed by an employer from whom a leave is requested under sections
181.940 to 181.944 for: who has performed at least 680 hours of work for that employer
or who has worked for that employer for at least 17 weeks. Employee does not mean an
independent contractor.

(1) at least 12 months preceding the request; and

(2) for an average number of hours per week equal to one-half the full-time
equivalent position in the employee's job classification as defined by the employer's
personnel policies or practices or pursuant to the provisions of a collective bargaining
agreement, during the 12-month period immediately preceding the leave.

Employee includes all individuals employed at any site owned or operated by the
employer but does not include an independent contractor.

Subd. 3.

Employer.

"Employer" means a person or entity that employs 21 one or
more employees at at least one site, except that, for purposes of the school leave allowed
under section 181.9412, employer means a person or entity that employs one or more
employees in Minnesota. The term includes an individual, corporation, partnership,
association, nonprofit organization, group of persons, state, county, town, city, school
district, or other governmental subdivision.

Subd. 4.

Child.

"Child" means an individual under 18 years of age or an individual
under age 20 who is still attending secondary school.

Subd. 5.

Family member.

"Family member" means an employee's child, adult
child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or
stepparent.

Subd. 6.

FMLA.

"FMLA" means the "Family and Medical Leave Act of 1993,"
United States Code, title 29, section 2601, et seq., as amended through the effective date
of this section.

Subd. 7.

Commissioner.

"Commissioner" means the commissioner of labor and
industry or authorized designee or representative.

Sec. 2.

Minnesota Statutes 2014, section 181.941, is amended to read:

181.941 PREGNANCY, AND PARENTING, AND CAREGIVER LEAVE.

Subdivision 1.

Twelve-week leave; pregnancy, birth, or adoption parenting,
and caregiver leave.

(a) An employer must grant an unpaid leave of absence to an
employee who is:

(1) a biological, or adoptive, or foster parent in conjunction with the birth, or
adoption, or placement through foster care of a child; or

(2) a female employee for prenatal care, or incapacity due to pregnancy, childbirth,
or related health conditions; or

(3) caring for a family member who has a serious health condition.

(b) The length of the leave shall be determined by the employee, but must not exceed
12 weeks, unless agreed to by the employer.

Subd. 2.

Start of leave.

The leave shall begin at a time requested by the employee.
The employer may adopt reasonable policies governing the timing of requests for unpaid
leave and may require an employee who plans to take a leave under this section to give
the employer reasonable notice of the date the leave shall commence and the estimated
duration of the leave. For leave taken under subdivision 1, paragraph (a), clause (1), the
leave must begin within 12 months of the birth or adoption; except that, in the case where
the child must remain in the hospital longer than the mother, the leave must begin within
12 months after the child leaves the hospital.

Subd. 3.

No employer retribution.

An employer shall not retaliate against an
employee for requesting or obtaining a leave of absence as provided by this section.

Subd. 4.

Continued insurance.

The employer must continue to make coverage
available to the employee while on leave of absence under any group insurance policy,
group subscriber contract, or health care plan for the employee and any dependents.
Nothing in this section requires the employer to pay the costs of the insurance or health
care while the employee is on leave of absence.

Subd. 5.

Confidentiality and nondisclosure.

If, in conjunction with a leave under
this section, an employer possesses health or medical information regarding an employee
or an employee's family member, the employer must treat that information as confidential
and not disclose the information except with the permission of the employee.

Sec. 3.

[181.9411] PREGNANCY, PARENTING, AND CAREGIVER LEAVE
INSURANCE.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms defined in
this subdivision have the meanings given them.

(b) "Health care provider" has the same meaning as set forth in the FMLA.

(c) "Median county family income" means the median family income under the
American Community Survey 5-Year Estimates for the most recent year available in
the county where the employee resides.

(d) "Serious health condition" has the same meaning as set forth in the FMLA.

Subd. 2.

Benefits; application and eligibility.

(a) Beginning one year after the date
on which the commissioner starts collecting premiums pursuant to subdivision 6, benefits
under this section must be paid to an employee who:

(1) is eligible for leave under section 181.941; and

(2) files an application for benefits in the manner required by commissioner.

(b) In addition to the requirements of paragraph (a), the commissioner may require:

(1) an employee who files a claim for benefits to attest that the employee has
requested leave from an employer under section 181.941; or

(2) submit a certification from the health care provider providing care to the
employee's family member supporting the claim that the employee's family member has a
serious health condition, provided the employee is filing an application for benefits related
to leave under section 181.941, subdivision 1, paragraph (a), clause (3), or the FMLA.

Subd. 3.

Duration of benefits; payment intervals.

(a) The maximum amount of
time an employee may receive benefits under this section is six weeks.

(b) Failure to submit an application for benefits in the manner and form required by
the commissioner does not automatically invalidate an employee's eligibility for benefits,
but the commissioner is not required to pay benefits for a period of more than two weeks
before the date on which an employee files an application for benefits conforming with
the commissioner's requirements.

(c) The commissioner must make the first payment of benefits to an eligible employee
within two weeks after the employee files an application for benefits conforming to the
commissioner's requirements. The commissioner must make later payments biweekly.

Subd. 4.

Amount of benefits; maximum weekly benefit.

(a) The commissioner
must calculate an employee's weekly benefit amount as follows:

(1) for an employee whose yearly earnings are not more than ... percent of the
median county family income, the commissioner must pay weekly benefits in an amount
equal to 95 percent of the employee's weekly wage;

(2) for an employee whose yearly earnings are more than ... percent, but not more
than ... percent, of the median county family income, the commissioner must pay weekly
benefits in an amount equal to 90 percent of the employee's weekly wage;

(3) for an employee whose yearly earnings are more than ... percent, but not more
than ... percent, of the median county family income, the commissioner must pay weekly
benefits in an amount equal to 85 percent of the employee's weekly wage;

(4) for an employee whose yearly earnings are equal to or more than ... percent of
the median county family income, the commissioner must pay weekly benefits in an
amount equal to 66 percent of the eligible employee's weekly wage.

(b) Notwithstanding paragraph (a), an employee's weekly benefit must not exceed
$1,000 per week.

(c) Beginning two years after the date on which the commissioner starts collecting
premiums pursuant to subdivision 6, the commissioner must annually adjust the maximum
weekly benefit amount to reflect changes in the United States Bureau of Labor Statistics
Consumer Price Index for the Minneapolis-St. Paul consolidated metropolitan statistical
area for all urban consumers, all goods, or its successor index.

(d) Benefits are not payable for less than one day of leave taken in one work week.

Subd. 5.

Pregnancy, parenting, and caregiver leave insurance account.

A
pregnancy, parenting, and caregiver leave insurance account is created in the special
revenue fund. Money in the account is annually appropriated to the Department of Labor
and Industry and does not lapse. The commissioner shall manage and administer the
account in accordance with this section.

Subd. 6.

Employee and employer premiums.

(a) Beginning on a date determined
by the commissioner but no later than one year after the effective date of this section,
every employee employed by an employer must pay a premium equal to 0.1 percent of
the employee's yearly wages to fund the program, but the maximum annual premium
charged to an employee must not exceed $78 per year. The premium is assessed on the
first $78,000 of wages earned in a calendar year.

(b) Beginning on a date determined by the commissioner but no later than one year
after the effective date of this section, every employer must pay a premium equal to the
total of premiums paid by the employer's employees.

(c) Each employer must collect the premium amount from each employee as a
payroll deduction from the employee's wages each payroll period and shall remit the
premium amount, along with the matching employer premium, to the commissioner, who
must send the premiums to the Department of Management and Budget for deposit in the
pregnancy, parenting, and caregiver leave insurance account in the special revenue fund.

(d) Beginning two years after the date on which the commissioner begins collecting
premiums pursuant to this subdivision, the commissioner must annually adjust the
maximum annual premium amount and the amount of annual income on which the
premium is assessed to reflect changes in the United States Bureau of Labor Statistics
Consumer Price Index for the Minneapolis-St. Paul consolidated metropolitan statistical
area for all urban consumers, all goods, or its successor index.

Subd. 7.

Disqualification from benefits; erroneous payments.

(a) An employee
must not receive benefits under this section for one year if the individual willfully makes a
false statement or misrepresentation regarding a material fact, or willfully fails to report a
material fact, to obtain benefits under this section.

(b) If benefits under this section are paid erroneously or as a result of a willful
misrepresentation or omission, or if a claim for benefits under this section is rejected after
benefits are paid, the commissioner may seek repayment of benefits from the recipient.

Subd. 8.

Federal taxation of benefits.

(a) If the Internal Revenue Service
determines that benefits under this section are subject to federal income tax, the
commissioner must advise an individual filing a claim for benefits, at the time of filing, that:

(1) the Internal Revenue Service has determined that benefits are subject to federal
income tax;

(2) requirements exist pertaining to estimated tax payments;

(3) the employee may elect to have federal income tax deducted and withheld
from the individual's payment of benefits in the amount specified in the federal Internal
Revenue Code; and

(4) the employee may change a previously elected withholding status.

(b) Amounts deducted and withheld from benefits under this subdivision must
remain in the pregnancy, parenting, and caregiver leave insurance account in the special
revenue fund until transferred to the federal taxing authority as payment of income tax.

(c) The commissioner must follow all procedures specified by the Internal Revenue
Service relating to deducting and withholding income tax.

Subd. 9.

Confidentiality and nondisclosure.

If, in conjunction with a leave under
this section, an employer possesses health or medical information regarding an employee
or an employee's family member, the employer must treat that information as confidential
and not disclose the information except with the permission of the employee.

Sec. 4.

Minnesota Statutes 2014, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of leave provided under section 181.941 may be reduced by any
period of:

(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation
provided by the employer so that the total leave does not exceed 12 weeks, unless agreed
to by the employer; or

(2) leave taken for the same purpose by the employee under United States Code,
title 29, chapter 28 the FMLA.

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing
leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise
affects an employee's rights with respect to any other employment benefit.

(c) Nothing in this section shall be construed to diminish an employee's entitlement
to benefits under section 181.9411.

(d) Nothing in sections 181.940 to 181.944 shall be construed to limit the right
of parties to a collective bargaining agreement to bargain and agree with respect to
leave 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 sections 181.940 to 181.944.

Sec. 5.

Minnesota Statutes 2014, section 181.9436, is amended to read:

181.9436 POSTING OF LAW NOTICE TO AFFECTED EMPLOYEES.

Subdivision 1.

Poster.

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 .
The department shall make the poster available, upon request, to employers for posting on
the employer's premises.

Subd. 2.

Grants to community organizations.

The commissioner may make grants
to community organizations for the purpose of outreach to and education for employees
affected by sections 181.939 and 181.9441 regarding those employees' rights under those
sections. The community-based organizations must be selected based on their experience,
capacity, and relationships with high-violation industries. The work under these grants
may include the creation and administration of a statewide worker hotline.

Sec. 6.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause (12), in the case of a shareholder of an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance with section 190.08,
subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; and

(21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code.; and

(22) the amount received in benefits under section 181.9411.