HF 2145

as introduced - 94th Legislature (2025 - 2026) Posted on 03/11/2025 12:16pm

A bill for an act
relating to employment; increasing penalties for employer misrepresentation and
misconduct; amending Minnesota Statutes 2024, sections 268.184, subdivision 1;
268B.19.

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

Section 1.

Minnesota Statutes 2024, section 268.184, subdivision 1, is amended to read:

Subdivision 1.

Misrepresentation; administrative penalties.

(a) The commissioner
must penalize an employer if that employer or any employee, officer, or agent of that
employer made a false statement or representation without a good faith belief as to correctness
of the statement or representation or knowingly failed to disclose a material fact in order
to:

(1) assist an applicant to receive unemployment benefits to which the applicant is not
entitled;

(2) prevent or reduce the payment of unemployment benefits to an applicant; or

(3) avoid or reduce any payment required from an employer under this chapter or section
116L.20.

The penalty is the greater of $500 or deleted text begin 50 deleted text end new text begin 100 new text end percent of the following resulting from the
employer's action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would otherwise
have been paid; or

(iii) the amount of any payment required from the employer under this chapter or section
116L.20 that was not paid.

(b) The commissioner must penalize an employer if that employer failed or refused to
honor a subpoena issued under section 268.188. The penalty is $500 and any costs of
enforcing the subpoena, including attorney fees.

new text begin (c) An additional penalty of up to $10,000 may be imposed for each individual the
employer failed to classify, represent, or treat as an employee pursuant to Minnesota Rules,
part 3315.0555.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.

deleted text begin (d) deleted text end new text begin (e) new text end The determination of penalty is final unless the employer files an appeal within
45 calendar days after the sending of the determination of penalty to the employer by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with
section 268.105.

Sec. 2.

Minnesota Statutes 2024, section 268B.19, is amended to read:

268B.19 EMPLOYER MISCONDUCT; PENALTY.

(a) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer is in collusion with any applicant for the purpose of
assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the amount
of benefits determined to be overpaid, whichever is greater.

(b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer:

(1) made a false statement or representation knowing it to be false;

(2) made a false statement or representation without a good-faith belief as to the
correctness of the statement or representation; or

(3) knowingly failed to disclose a material fact.

(c) The penalty is the greater of $500 or deleted text begin 50 deleted text end new text begin 100 new text end percent of the following resulting from
the employer's action:

(1) the amount of any overpaid benefits to an applicant;

(2) the amount of benefits not paid to an applicant that would otherwise have been paid;
or

(3) the amount of any payment required from the employer under this chapter that was
not paid.

new text begin (d) An additional penalty of up to $10,000 may be imposed for each individual the
employer failed to classify, represent, or treat as an employee pursuant to Minnesota Rules,
part 5200.0221.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Penalties must be paid within 30 calendar days of issuance of the determination
of penalty and credited to the family and medical benefit insurance account.