HF 1963

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:56am

A bill for an act
relating to employment; providing new requirements for employers in the early
warning system; applying new penalties for any employer failing to comply with
the Worker Adjustment and Retraining Notification Act, United States Code,
title 29, section 2101; enhancing oversight authority to the commissioner of
employment and economic development; amending Minnesota Statutes 2008,
sections 116J.035, by adding subdivisions; 116L.976, subdivision 1, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2008, section 116J.035, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Compliance orders. new text end

new text begin The commissioner may issue an order requiring an
employer to comply with section 116L.976. 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.
new text end

Sec. 2.

Minnesota Statutes 2008, section 116J.035, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Civil actions. new text end

new text begin The commissioner may bring an action in the district court
where an employer resides or where the commissioner maintains an office to enforce or
require compliance with orders issued under subdivision 7.
new text end

Sec. 3.

Minnesota Statutes 2008, section 116J.035, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Employer liability. new text end

new text begin If an employer is found by the commissioner to
have violated a section identified in subdivision 7, or any rule adopted under section
116L.976, 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 treble damages, less any
amount actually paid to the employee by the employer, and an additional equal amount as
liquidated damages. Any employer who is found by the commissioner to have repeatedly
or willfully violated section 116L.976 shall be subject to a civil penalty of $1,000 for each
violation for each employee. In determining the amount of a civil penalty under this
subdivision, the appropriateness of the 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, 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 following:
new text end

new text begin (1) costs of services rendered by the attorney general, including reasonable attorney
fees;
new text end

new text begin (2) costs of services of private attorneys if engaged by the department and reasonable
attorney fees;
new text end

new text begin (3) costs of services of administrative law judges, court reporters, and expert
witnesses; and
new text end

new text begin (4) the cost of transcripts.
new text end

new text begin 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.
new text end

Sec. 4.

Minnesota Statutes 2008, section 116J.035, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Court actions; suits brought by private parties. new text end

new text begin An employee may
bring a civil action seeking redress for a violation or violations of section 116L.976
directly to district court. An employer who violates the requirements under section
116L.976 is liable to the employee for the full amount of the wages, gratuities, and
overtime compensation, and for an additional equal amount as liquidated damages. In
addition, in an action under this subdivision the employee may seek treble damages and
other appropriate relief provided by subdivision 9 and otherwise provided by law.
new text end

Sec. 5.

Minnesota Statutes 2008, section 116J.035, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin District court jurisdiction. new text end

new text begin Any action brought under subdivision 10
may be filed in the district court of the county where a violation of section 116L.976 is
alleged to have been committed, where the respondent resides or has a principal place
of business, or any other court of competent jurisdiction. The action may be brought by
one or more employees.
new text end

Sec. 6.

Minnesota Statutes 2008, section 116J.035, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Attorney fees and costs. new text end

new text begin In any action brought pursuant to subdivision
10, the court shall order an employer who is found to have committed a violation of
section 116L.976 to pay to the employee's costs, disbursements, witness fees, and
reasonable attorney fees.
new text end

Sec. 7.

Minnesota Statutes 2008, section 116L.976, subdivision 1, is amended to read:

Subdivision 1.

Notice.

(a) deleted text begin The commissioner shall encourage those business
establishments deleted text end new text begin An employer new text end considering deleted text begin a decision to effect deleted text end a plant closing, substantial
layoff, or relocation of operations located in this state deleted text begin to deleted text end new text begin shall new text end give new text begin 60 days' new text end notice of
that decision deleted text begin as early as possible deleted text end to the commissioner, the employees of the affected
establishment, any employee organization representing the employees, and the local
government unit in which the affected establishment is located. This notice shall be in
addition to any notice required under the Worker Adjustment and Retraining Notification
Act, United States Code, title 29, section 2101. new text begin All exemptions provided by United States
Code, title 29, sections 2101 through 2109, under the Worker Adjustment and Retraining
Notification Act shall be recognized and enforced under this provision.
new text end

(b) For purposes of this section, "plant closing" means the announced or actual
permanent or temporary shutdown of a single site of employment, or one or more facilities
or operating units within a single site of employment, if the shutdown results in an
employment loss at the single site of employment during any 30-day period for 50 or more
employees excluding employees who work less than 20 hours per week.

new text begin (c) For purposes of this section, "employer" has the meaning given under United
States Code, title 29, section 2101.
new text end

Sec. 8.

Minnesota Statutes 2008, section 116L.976, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Penalties for noncompliance. new text end

new text begin In addition to other fines and penalties
provided by law, an aggrieved person may bring a civil action against an employer who:
new text end

new text begin (1) violates the provisions of this section;
new text end

new text begin (2) violates federal requirements under the Worker Adjustment and Retraining
Notification Act, United States Code, title 29, sections 2101 through 2109; and
new text end

new text begin (3) intentionally denies payment of back pay and benefits for the period of violation,
up to 60 days as required under the Worker Adjustment Retraining Notification Act.
new text end

new text begin A plaintiff prevailing in an action under this subdivision is entitled to treble damages,
along with an award of costs, disbursements, and reasonable attorney fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to crimes
committed and causes of action arising on or after that date.
new text end

Sec. 9. new text begin CITATION.
new text end

new text begin Sections 1 to 8 shall be referred to as the "Bob Swenson Employee Protection Act
of 2009."
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1, 7, and 9 are effective the day following final enactment.
new text end