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Minnesota Legislature

Office of the Revisor of Statutes

HF 2536

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/03/2014 02:42pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; providing for the Women's Economic Security
Act; requiring equal pay certificates of compliance; modifying workforce
development provisions; creating women and high-wage, high-demand,
nontraditional jobs grant program; modifying eligibility for unemployment
insurance benefits; offering women entrepreneurs business development
competitive grants; requiring a report on a potential state-administered
retirement savings plan; modifying parenting leave, sick leave, and pregnancy
accommodations; providing employment protections for women and family
caregivers; providing wage disclosure protection; modifying the award of early
childhood scholarships; appropriating money; amending Minnesota Statutes
2012, sections 13.552, by adding a subdivision; 181.939; 181.940, subdivision 2;
181.941; 181.943; 268.095, subdivisions 1, 6; 363A.03, by adding a subdivision;
363A.08, subdivisions 1, 2, 3, 4, by adding subdivisions; Minnesota Statutes
2013 Supplement, sections 116L.665, subdivision 2; 124D.165, subdivision 3;
181.9413; proposing coding for new law in Minnesota Statutes, chapters 116L;
181; 363A.

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

ARTICLE 1

WOMEN'S ECONOMIC SECURITY ACT

Section 1. new text beginCITATION; WOMEN'S ECONOMIC SECURITY ACT.
new text end

new text begin This act shall be known as the Women's Economic Security Act.
new text end

ARTICLE 2

ECONOMIC SECURITY

Section 1.

Minnesota Statutes 2012, section 13.552, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Equal pay certificate of compliance. new text end

new text begin Access to data relating to equal pay
certificates of compliance is governed by section 363A.44.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 116L.665, subdivision 2, is
amended to read:


Subd. 2.

Membership.

The governor's Workforce Development Council is
composed of 31 members appointed by the governor. The members may be removed
pursuant to section 15.059. In selecting the representatives of the council, the governor
shall ensure that 50 percent of the members come from nominations provided by local
workforce councils. Local education representatives shall come from nominations
provided by local education to employment partnerships. The 31 members shall represent
the following sectors:

(a) State agencies: the following individuals shall serve on the council:

(1) commissioner of the Minnesota Department of Employment and Economic
Development;

(2) commissioner of the Minnesota Department of Education; and

(3) commissioner of the Minnesota Department of Human Services.

(b) Business and industry: six individuals shall represent the business and industry
sectors of Minnesota.

(c) Organized labor: six individuals shall represent labor organizations of Minnesota.

(d) Community-based organizations: four individuals shall represent
community-based organizations of Minnesota. Community-based organizations are
defined by the Workforce Investment Act as private nonprofit organizations that are
representative of communities or significant segments of communities and that have
demonstrated expertise and effectiveness in the field of workforce investment and may
include entities that provide job training services, serve youth, serve individuals with
disabilities, serve displaced homemakers, union-related organizations, employer-related
nonprofit organizations, and organizations serving nonreservation Indians and tribal
governments.

(e) Education: six individuals shall represent the education sector of Minnesota
as follows:

(1) one individual shall represent local public secondary education;

(2) one individual shall have expertise in design and implementation of school-based
service-learning;

(3) one individual shall represent leadership of the University of Minnesota;

(4) one individual shall represent secondary/postsecondary vocational institutions;

(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
Universities; and

(6) one individual shall have expertise in agricultural education.

(f) Other: two individuals shall represent other constituencies including:

(1) units of local government; and

(2) applicable state or local programs.

The speaker and the minority leader of the house of representatives shall each
appoint a representative to serve as an ex officio member of the council. The majority
and minority leaders of the senate shall each appoint a senator to serve as an ex officio
member of the council.

The governor shall appoint one individual representing public librariesnew text begin, one
individual with expertise in assisting women in obtaining employment in high-wage,
high-demand, nontraditional occupations,
new text end and one individual representing adult basic
education programs to serve as deleted text beginadeleted text end nonvoting deleted text beginadvisordeleted text endnew text begin advisorsnew text end to the council.

(g) Appointment: each member shall be appointed for a term of three years from the
first day of January or July immediately following their appointment. Elected officials
shall forfeit their appointment if they cease to serve in elected office.

(h) Members of the council are compensated as provided in section 15.059,
subdivision 3
.

Sec. 3.

new text begin [116L.99] WOMEN AND HIGH-WAGE, HIGH-DEMAND,
NONTRADITIONAL JOBS GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purpose of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (c) ''Eligible organization'' includes, but is not limited to:
new text end

new text begin (1) community-based organizations experienced in serving women;
new text end

new text begin (2) employers;
new text end

new text begin (3) business and trade associations;
new text end

new text begin (4) labor unions and employee organizations;
new text end

new text begin (5) registered apprenticeship programs;
new text end

new text begin (6) secondary and postsecondary education institutions located in Minnesota; and
new text end

new text begin (7) workforce and economic development agencies.
new text end

new text begin (d) "High-wage, high-demand" means occupations that represent at least 0.1 percent
of total employment in the base year, have an annual median salary which is higher than
the average for the current year, and are projected to have more total openings as a share
of employment than the average.
new text end

new text begin (e) "Low-income" means income less than 200 percent of the federal poverty
guideline adjusted for a family size of four.
new text end

new text begin (f) "Nontraditional occupations'' means those occupations in which women make
up less than 25 percent of the workforce as defined under United States Code, title 20,
section 2302.
new text end

new text begin (g) "Registered apprenticeship program'' means a program registered under United
States Code, title 29, section 50.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin The commissioner shall establish the women and
high-wage, high-demand, nontraditional jobs grant program to increase the number of
women in high-wage, high-demand, nontraditional occupations. The commissioner shall
make grants to eligible organizations for programs that encourage and assist women to enter
high-wage, high-demand, nontraditional occupations including but not limited to those in
the skilled trades, science, technology, engineering, and math (STEM) occupations.
new text end

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin (a) Grant funds awarded under this section may be used for:
new text end

new text begin (1) recruitment, preparation, placement, and retention of women, including
low-income women and women over 50 years old, in registered apprenticeships,
postsecondary education programs, on-the-job training, and permanent employment in
high-wage, high-demand, nontraditional occupations;
new text end

new text begin (2) secondary or postsecondary education or other training to prepare women
to succeed in high-wage, high-demand, nontraditional occupations. Activities under
this clause may be conducted by the grantee or in collaboration with another institution,
including but not limited to a public or private secondary or postsecondary school;
new text end

new text begin (3) innovative, hands-on, best practices that stimulate interest in high-wage,
high-demand, nontraditional occupations among girls, increase awareness among
girls about opportunities in high-wage, high-demand, nontraditional occupations, or
increase access to secondary programming leading to jobs in high-wage, high-demand,
nontraditional occupations. Best practices include but are not limited to mentoring,
internships, or apprenticeships for girls in high-wage, high-demand, nontraditional
occupations;
new text end

new text begin (4) training and other staff development for job seeker counselors and Minnesota
family investment program (MFIP) caseworkers on opportunities in high-wage,
high-demand, nontraditional occupations;
new text end

new text begin (5) incentives for employers and sponsors of registered apprenticeship programs
to retain women in high-wage, high-demand, nontraditional occupations for more than
one year;
new text end

new text begin (6) training and technical assistance for employers to create a safe and healthy
workplace environment designed to retain and advance women, including best practices
for addressing sexual harassment, and to overcome gender inequity among employers
and registered apprenticeship programs;
new text end

new text begin (7) public education and outreach activities to overcome stereotypes about women
in high-wage, high-demand, nontraditional occupations, including the development of
educational and marketing materials; and
new text end

new text begin (8) support for women in high-wage, high-demand, nontraditional occupations
including but not limited to assistance with workplace issues resolution and access to
advocacy assistance and services.
new text end

new text begin (b) Grant applications must include detailed information about how the applicant
plans to:
new text end

new text begin (1) increase women's participation in high-wage, high-demand occupations in which
women are currently underrepresented in the workforce;
new text end

new text begin (2) comply with the requirements under subdivision 3; and
new text end

new text begin (3) use grant funds in conjunction with funding from other public or private sources.
new text end

new text begin (c) In awarding grants under this subdivision, the commissioner shall give priority
to eligible organizations:
new text end

new text begin (1) with demonstrated success in recruiting and preparing women, especially
low-income women and women over 50 years old, for high-wage, high-demand,
nontraditional occupations; and
new text end

new text begin (2) that leverage additional public and private resources.
new text end

new text begin (d) At least 50 percent of total grant funds must be awarded to programs providing
services and activities targeted to low-income women.
new text end

new text begin (e) The commissioner of employment and economic development in conjunction
with the commissioner of labor and industry shall monitor the use of funds under this
section, collect and compile information on the activities of other state agencies and public
or private entities that have purposes similar to those under this section, and identify other
public and private funding available for these purposes.
new text end

Sec. 4.

Minnesota Statutes 2012, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the
employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that
provided substantially better terms and conditions of employment, but the applicant did
not work long enough at the second employment to have sufficient subsequent earnings to
satisfy the period of ineligibility that would otherwise be imposed under subdivision 10
for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment because the employment was unsuitable for the applicant;

(4) the employment was unsuitable for the applicant and the applicant quit to enter
reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment
in the base period, from which full-time employment the applicant separated because of
reasons for which the applicant was held not to be ineligible, and the wage credits from
the full-time employment are sufficient to meet the minimum requirements to establish a
benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant
was going to be laid off because of lack of work within 30 calendar days. An applicant
who quit employment within 30 calendar days of a notified date of layoff because of lack
of work is ineligible for unemployment benefits through the end of the week that includes
the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or
injury made it medically necessary that the applicant quit; or (ii) in order to provide
necessary care because of the illness, injury, or disability of an immediate family member
of the applicant. This exception only applies if the applicant informs the employer of
the medical problem and requests accommodation and no reasonable accommodation
is made available.

If the applicant's serious illness is chemical dependency, this exception does not
apply if the applicant was previously diagnosed as chemically dependent or had treatment
for chemical dependency, and since that diagnosis or treatment has failed to make
consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the
applicant to quit the employment, provided the applicant made reasonable effort to obtain
other child care and requested time off or other accommodation from the employer and no
reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable
employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) new text beginthe applicant quit becausenew text end domestic abusenew text begin, sexual assault, or stalkingnew text end of the
applicant or an immediate family member of the applicant, necessitated the applicant's
quitting the employment. deleted text beginDomestic abusedeleted text enddeleted text begin must be shown by one or more of the following:
deleted text end

deleted text begin (i) a district court order for protection or other documentation of equitable relief
deleted text end deleted text begin issued by a court;
deleted text end

deleted text begin (ii) a police record documenting the domestic abuse deleted text end deleted text begin ;
deleted text end

deleted text begin (iii) documentation that the perpetrator of the domestic abuse deleted text end deleted text begin has been convicted
of the offense
deleted text end deleted text begin of domestic abuse deleted text end deleted text begin ;
deleted text end

deleted text begin (iv) medical documentation of domestic abuse deleted text end deleted text begin ; deleted text end deleted text begin or
deleted text end

deleted text begin (v) written statement that the applicant or an immediate family member of the
deleted text end deleted text begin applicant is a victim of domestic abuse, deleted text end deleted text begin provided by a social deleted text end deleted text begin worker, member of the
clergy, shelter worker, attorney at law, or other professional who
deleted text end deleted text begin has assisted the applicant
in dealing with the domestic abuse
deleted text end deleted text begin .
deleted text end

deleted text begin Domestic abuse for purposes of this clause is defined under section 518B.01; or
deleted text end

new text begin For purposes of this section:
new text end

new text begin (i) "domestic abuse" has the meaning given in section 518B.01;
new text end

new text begin (ii) "sexual assault" means an act that would constitute a violation of sections
609.342 to 609.3453 or 609.352; and
new text end

new text begin (iii) "stalking" means an act that would constitute a violation of section 609.749; or
new text end

(10) the applicant quit in order to relocate to accompany a spouse whose job location
changed making it impractical for the applicant to commute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 5, 2014, and applies to all
determinations and appeal decisions issued on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2012, section 268.095, subdivision 6, is amended to read:


Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means any
intentional, negligent, or indifferent conduct, on the job or off the job that displays clearly:

(1) a serious violation of the standards of behavior the employer has the right to
reasonably expect of the employee; or

(2) a substantial lack of concern for the employment.

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the
circumstances;

(5) conduct that was a consequence of the applicant's inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the
employer;

(8) absence, with proper notice to the employer, in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a consequence of the applicant's chemical dependency, unless
the applicant was previously diagnosed chemically dependent or had treatment for
chemical dependency, and since that diagnosis or treatment has failed to make consistent
efforts to control the chemical dependency; or

(10) conduct that was a consequence of the applicant, or an immediate family
member of the applicant, being a victim of domestic abuse deleted text beginas defined under section
518B.01
deleted text endnew text begin, sexual assault, or stalkingnew text end. deleted text beginDomestic abusedeleted text end deleted text beginmust bedeleted text end deleted text beginshown as provided for in
subdivision 1, clause (9).
deleted text end

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20,
169A.31, or 169A.50 to 169A.53 that interferes with or adversely affects the employment
is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single
incident, that is an important fact that must be considered in deciding whether the conduct
rises to the level of employment misconduct under paragraph (a). This paragraph does
not require that a determination under section 268.101 or decision under section 268.105
contain a specific acknowledgment or explanation that this paragraph was considered.

(e) The definition of employment misconduct provided by this subdivision is
exclusive and no other definition applies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 5, 2014, and applies to all
determinations and appeal decisions issued on or after that date.
new text end

Sec. 6.

new text begin [363A.44] EQUAL PAY CERTIFICATE OF COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin No department or agency of the state may execute a contract
in excess of $500,000 with a business that has 50 or more full-time employees in this
state or a state where the business has its primary place of business on a single working
day during the previous 12 months unless the business has an equal pay certificate of
compliance. For purposes of this section, a business does not include an entity or a parent
or subsidiary of the entity with a contract with a department or agency of the state if the
entity has a license, certification, registration, provider agreement, or provider enrollment
contract which are a prerequisite to receive reimbursement for providing goods and
services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I, and 256L.
The commissioner shall issue an equal pay certificate of compliance to a business that
submits to the commissioner a statement that:
new text end

new text begin (1) its compensation policies or practices are based on the principle of equal pay
for equal work, and are in compliance with title VII of the Civil Rights Act of 1964, the
Equal Pay Act of 1963, the Minnesota Human Rights Act, and the Minnesota Equal
Pay for Equal Work Law;
new text end

new text begin (2) its wage schedules and other compensation formulas are not related to, or based
on, the sex of its employees;
new text end

new text begin (3) it does not restrict employees of one sex to certain job classifications and makes
retention and promotion of qualified employees without regard to sex;
new text end

new text begin (4) its contributions to insurance, pensions, and other benefit plans are not related to,
or based on, the sex of its employees; and
new text end

new text begin (5) the average compensation for its female employees is not consistently below the
average compensation for its male employees within each of the major job categories in
the EEO-1 employee information report for which an employee is expected to perform
work under the contract, taking into account factors such as length of service, requirements
of specific jobs, experience, skill, effort, responsibility, working conditions of the job, or
other mitigating factors.
new text end

new text begin Subd. 2. new text end

new text begin Application; issuance; duration. new text end

new text begin A business applying for a certificate
of compliance must pay a $150 fee to the commissioner. The commissioner must issue
a business an equal pay certificate of compliance, or a statement of why the application
was rejected, within 15 days of receipt of the application and the filing fee. An equal pay
certificate of compliance is valid for four years. Proceeds of the filing fee are appropriated
to the commissioner for purposes of this section.
new text end

new text begin Subd. 3. new text end

new text begin Conditions; audit. new text end

new text begin (a) As a condition of receiving an equal pay certificate
of compliance, and as a condition of the contract that is subject to this section, a business
must agree that:
new text end

new text begin (1) the commissioner may audit the business's compliance with this section; and
new text end

new text begin (2) the commissioner or the agency entering into the contract may void a contract if
the commissioner determines that the business is not in compliance with items specified in
subdivision 1, clauses (1) to (5).
new text end

new text begin (b) As a condition of receiving an equal pay certificate of compliance, and as a
condition of the contract that is subject to this section, a business must agree that as part
of an audit, the business will provide the commissioner the following information with
respect to employees expected to perform work under the contract in each of the major
job categories in the EEO-1 employee information report:
new text end

new text begin (1) number of male employees;
new text end

new text begin (2) number of female employees;
new text end

new text begin (3) average annualized salaries paid to male employees and to female employees,
in the manner most consistent with the employer's compensation system, within each
major job category;
new text end

new text begin (4) information on performance payments, benefits, or other elements of
compensation, in the manner most consistent with the employer's compensation system, if
requested by the commissioner as part of a determination as to whether these elements of
compensation are different for male and female employees;
new text end

new text begin (5) average length of service for male and female employees in each major job
category; and
new text end

new text begin (6) other information identified by the business or by the commissioner, as needed,
to determine compliance with items specified in subdivision 1, clauses (1) to (5).
new text end

new text begin Subd. 4. new text end

new text begin Compliance plan; revocation of certificate. new text end

new text begin If the commissioner
determines that a business that has an equal pay certificate of compliance is not in
compliance with subdivision 1, clauses (1) to (5), the commissioner may require the
business to implement a plan to remedy the noncompliance with subdivision 1, clauses (1)
to (5), as a condition of retaining its certificate of compliance. The commissioner may
suspend or revoke a certificate if the commissioner determines that the business is not in
compliance with items specified in subdivision 1, clauses (1) to (5), and is failing to
implement its plan to remedy noncompliance.
new text end

new text begin Subd. 5. new text end

new text begin Voiding of contract. new text end

new text begin Prior to taking action to void a contract, the
commissioner must first demonstrate that no undue hardship would occur to the state and
that obtaining wages and benefits due to employees of the business is an insufficient
remedy. Multiple violations of the laws set forth in subdivision 1, clause (1), or a
determination of deliberate intent to violate these laws by the certificate holder may be
sufficient justification for the commissioner to void a contract.
new text end

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin A business may obtain a hearing when the
commissioner issues an order directing a contract voided or an equal pay certificate of
compliance revoked by filing a written request for a hearing with the department within
20 days after service of the notice of sanction. The hearing shall be a contested case
proceeding pursuant to sections 14.57 to 14.69.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance
to any business that requests assistance.
new text end

new text begin Subd. 8. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner by a business for
purposes of obtaining a certificate of compliance under this section, or in response to an
audit under this section, are private data on individuals or nonpublic data with respect to
persons other than Department of Human Rights employees. The commissioner's decision
to grant, not grant, revoke, or suspend a certificate of compliance is public data.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014, and applies to a
contract for which a state department or agency issues a solicitation on or after that date.
new text end

Sec. 7. new text beginHIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS
PROGRAM APPROPRIATION.
new text end

new text begin $500,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of employment and economic development to develop and implement the
women and high-wage, high-demand, nontraditional jobs grant program under Minnesota
Statutes, section 116L.99. Funds available under this section must not supplant other
funds available for the same purposes. This is a onetime appropriation.
new text end

Sec. 8. new text beginWOMEN ENTREPRENEURS BUSINESS DEVELOPMENT;
APPROPRIATION.
new text end

new text begin (a) $500,000 in fiscal year 2015 is appropriated from the general fund to the
commissioner of employment and economic development for grants to Women
Venture and the Women's Business Center of Northeastern Minnesota at the Northeast
Entrepreneurial Fund to facilitate and promote the creation and expansion of
women-owned businesses in Minnesota. Funds available under this section must be
divided equally among grant recipients. This is a onetime appropriation. Grant funds may
be used only for the purposes under paragraph (b) except that up to ten percent of each
grant award may be used by grant recipients for administrative costs.
new text end

new text begin (b) Grants awarded under this section must be used for:
new text end

new text begin (1) entrepreneurial training, mentoring, and technical assistance for the startup or
expansion of eligible women-owned businesses;
new text end

new text begin (2) development of networks of potential investors for eligible women-owned
businesses; and
new text end

new text begin (3) development of recruitment programs for mid-career women with an interest in
starting eligible women-owned businesses.
new text end

new text begin (c) For the purposes of this section "eligible women-owned business" means a
business entity:
new text end

new text begin (1) that is at least 51 percent female owned or, in the case of a publicly traded
business, at least 51 percent of the stock is female owned;
new text end

new text begin (2) whose management and daily operations are controlled by women;
new text end

new text begin (3) that is organized for profit;
new text end

new text begin (4) that is projected to generate at least $500,000 in annual revenue and create at
least ten jobs, each of which pay an annual income equal to at least 200 percent of the
federal poverty guideline adjusted for a family size of four; and
new text end

new text begin (5) in the field of construction; transportation; warehousing; agriculture; mining;
finance; insurance; professional, technical, or scientific services; technology; or other
industries with businesses meeting the revenue and job creation requirements of clause (4).
new text end

new text begin (d) A grant award under this section does not affect any other grant award or
appropriation made to a grant recipient.
new text end

new text begin (e) The Women's Business Center of Northeastern Minnesota shall partner with
the Arrowhead Economic Opportunity Agency to provide entrepreneurial development
training and resources to women with incomes less than 200 percent of the federal poverty
guideline, adjusted for a family size of four, to assist with the start-up or expansion of
eligible women-owned businesses.
new text end

Sec. 9. new text beginWOMEN AND HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL
JOBS APPRENTICESHIPS; APPROPRIATION.
new text end

new text begin $250,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of labor and industry for the labor education advancement program under
Minnesota Statutes, section 178.11, to educate, promote, assist, and support women to
enter apprenticeship programs in high-wage, high-demand, nontraditional occupations.
Funds available under this section must not supplant other funds available for the same
purposes. This is a onetime appropriation.
new text end

Sec. 10. new text beginREPORT; RETIREMENT SAVINGS PLAN.
new text end

new text begin (a) The commissioner of management and budget must report to the legislature
by January 15, 2015, on the potential for a state-administered retirement savings plan
to serve employees without access to either an automatic enrollment payroll deduction
IRA maintained or offered by their employer, or a multiemployer retirement plan or
qualifying retirement plan or arrangement described in sections 414(f) and 219(g)(5),
respectively, of the Internal Revenue Code of 1986, as amended through April 14, 2011.
The potential state-administered plan would provide for individuals to make contributions
to their own accounts to be pooled and invested by the State Board of Investment, with the
benefit consisting of the balance in each individual's account, and with the state having no
liability for investment earnings and losses, while discouraging employers from dropping
existing retirement plan options.
new text end

new text begin (b) The report must include:
new text end

new text begin (1) estimates of the number of Minnesota workers who could be served by the
potential state-administered plan, and the participation rate that would make the plan
self-sustaining;
new text end

new text begin (2) the effect of federal tax laws and the federal Employee Retirement Income
Security Act on a potential state-administered plan and on participating employers and
employees, including coverage and potential gaps in consumer protections;
new text end

new text begin (3) the potential use and availability of investment strategies, private insurance,
underwriting, or reinsurance against loss to limit or eliminate potential state liability
and manage risk to the principal;
new text end

new text begin (4) options for the process by which individuals would enroll in and contribute to
the plan;
new text end

new text begin (5) projected costs of administration, record keeping, and investment management,
including staffing, legal, compliance, licensing, procurement, communications with
employers and employees, oversight, marketing, technology and infrastructure, and the fee
needed to cover these costs as a percentage of the average daily net assets of the potential
state-administered plan, relative to asset size, with estimates of investment-related fees
determined in consultation with the State Board of Investment; and
new text end

new text begin (6) a comparison of a potential state-administered plan to private sector and federal
government retirement savings options with regard to participation rates, contribution
rates, risk-adjusted return expectations, fees, and any other factors determined by
the commissioner, which may include suitability in meeting the investment needs of
participants.
new text end

new text begin (c) Subject to available appropriation, the report may include:
new text end

new text begin (1) estimates of the average amount of savings and other financial resources residents
of Minnesota have upon retirement and those that are recommended for a financially
secure retirement in Minnesota;
new text end

new text begin (2) estimates of the relative progress toward achieving the savings recommended for
a financially secure retirement by gender, race, and ethnicity;
new text end

new text begin (3) barriers to savings and reasons individuals and employers may not be
participating in existing private sector retirement plans;
new text end

new text begin (4) the estimated impact on publicly funded social safety net programs attributable
to insufficient retirement savings, and the aggregate effect of potential state-administered
plan options on publicly funded social safety net programs and the state economy;
new text end

new text begin (5) the effect of federal tax laws and the federal Employee Retirement Income
Security Act on a potential state-administered plan that allows for voluntary employer
contributions, either commingled with or segregated from employee contributions;
new text end

new text begin (6) options for a potential state-administered plan to use group annuities to ensure a
stable stream of retirement income throughout beneficiaries' retirement years;
new text end

new text begin (7) alternative ways and costs for the state to encourage similar outcomes to a
state-administered plan; and
new text end

new text begin (8) other topics that the commissioner determines are relevant to legislative
consideration of possible establishment of a state-administered plan.
new text end

new text begin (d) The commissioner may meet any of the topics in paragraph (c) by reporting the
results of a request for public comment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text beginRETIREMENT SAVINGS PLAN REPORT; APPROPRIATION.
new text end

new text begin $300,000 in fiscal year 2014 is appropriated from the general fund to the
commissioner of management and budget for the retirement savings plan report under
section 10. This is a onetime appropriation and is available until expended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12. new text beginREPORT; PAY EQUITY.
new text end

new text begin The commissioner of human rights shall report to the governor and the chairs and
ranking minority members of the committees in the senate and the house of representatives
with primary jurisdiction over the department by January 31, 2016. The report shall
indicate the number of equal pay certificates issued under Minnesota Statutes, section
363A.44, the number of audits conducted, and a summary of results of its auditing efforts.
The commissioner shall consult with the Office on the Economic Status of Women
in preparing the report.
new text end

Sec. 13. new text beginAPPROPRIATION; PAY EQUITY.
new text end

new text begin $674,000 in fiscal year 2015 is appropriated from the general fund to the
commissioner of human rights for implementation of Minnesota Statutes, section
363A.44. The agency base budget for this purpose is $426,000 each year in fiscal years
2016 and 2017.
new text end

ARTICLE 3

LABOR STANDARDS AND WAGES

Section 1.

Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:


Subd. 2.

Employee.

"Employee" means a person who performs services for hire for
an employer from whom a leave is requested under sections 181.940 to 181.944 for:

(1) at least 12 deleted text beginconsecutivedeleted text end months deleted text beginimmediatelydeleted text end 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 deleted text beginthose 12 monthsdeleted text endnew text begin the 12-month period immediately preceding the leavenew text end.

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

Sec. 2.

Minnesota Statutes 2012, section 181.941, is amended to read:


181.941 new text beginPREGNANCY AND new text endPARENTING LEAVE.

Subdivision 1.

deleted text beginSixdeleted text endnew text begin Twelvenew text end-week leave; new text beginpregnancy, new text endbirthnew text begin,new text end or adoption.

new text begin(a) new text endAn
employer must grant an unpaid leave of absence to an employee who is deleted text begina natural or
adoptive parent in conjunction with the birth or adoption of a child. The length of the
leave shall be determined by the employee, but may not exceed six weeks, unless agreed
to by the employer.
deleted text endnew text begin:
new text end

new text begin (1) a natural or adoptive parent in conjunction with the birth or adoption of a child; or
new text end

new text begin (2) a female employee for prenatal care, or incapacity due to pregnancy, childbirth,
or related health conditions.
new text end

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

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
leavedeleted text begin.deleted text end new text begin 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),
new text endthe
leave deleted text beginmaydeleted text endnew text begin mustnew text end begin deleted text beginnot more than six weeks afterdeleted text endnew text begin within 12 months ofnew text end the birth or
adoption; except that, in the case where the child must remain in the hospital longer than
the mother, the leave deleted text beginmay notdeleted text endnew text begin mustnew text end begin deleted text beginmore than six weeksdeleted text endnew text begin within 12 monthsnew text end 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.

Sec. 3.

Minnesota Statutes 2013 Supplement, section 181.9413, is amended to read:


181.9413 SICK LEAVE BENEFITS; CARE OF RELATIVES.

(a) An employee may use personal sick leave benefits provided by the employer
for absences due to an illness of or injury to the employee's child, as defined in section
181.940, subdivision 4, adult child, spouse, sibling, parent, new text begingrandchild, new text endgrandparent, or
stepparent, for reasonable periods of time as the employee's attendance may be necessary,
on the same terms upon which the employee is able to use sick leave benefits for the
employee's own illness or injury. This section applies only to personal sick leave benefits
payable to the employee from the employer's general assets.

(b) new text beginAn employee may use sick leave as allowed under this section for safety leave,
whether or not the employee's employer allows use of sick leave for that purpose for such
reasonable periods of time as may be necessary. Safety leave may be used for assistance
to the employee or assistance to the relatives described in paragraph (a). For the purpose
of this section, "safety leave" is leave for the purpose of providing or receiving assistance
because of sexual assault, domestic abuse, or stalking. For the purpose of this paragraph:
new text end

new text begin (1) "domestic abuse" has the meaning given in section 518B.01;
new text end

new text begin (2) "sexual assault" means an act that constitutes a violation under sections 609.342
to 609.3453 or 609.352; and
new text end

new text begin (3) "stalking" has the meaning given in section 609.749.
new text end

new text begin (c) new text endAn employer may limit the use of new text beginsafety leave as described in paragraph (b) or
new text endpersonal sick leave benefits provided by the employer for absences due to an illness of
or injury to the employee's adult child, spouse, sibling, parent, new text begingrandchild, new text endgrandparent,
or stepparent to no less than 160 hours in any 12-month period. This paragraph does not
apply to absences due to the illness or injury of a child, as defined in section 181.940,
subdivision 4
.

deleted text begin (c)deleted text end new text begin(d) new text endFor purposes of this section, "personal sick leave benefits" means time
accrued and available to an employee to be used as a result of absence from work due
to personal illness or injury, but does not include short-term or long-term disability or
other salary continuation benefits.

deleted text begin (d)deleted text end new text begin(e) new text endFor the purpose of this section, "child" includes a stepchild and a biological,
adopted, and foster child.

new text begin (f) For the purpose of this section, "grandchild" includes a step-grandchild, and a
biological, adopted, and foster grandchild.
new text end

deleted text begin (e)deleted text end new text begin(g) new text endThis section does not prevent an employer from providing greater sick leave
benefits than are provided for under this section.

new text begin (h) An employer shall not retaliate against an employee for requesting or obtaining a
leave of absence under this section.
new text end

Sec. 4.

new text begin [181.9414] PREGNANCY ACCOMMODATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Accommodation. new text end

new text begin An employer must provide reasonable
accommodation for an employee for conditions related to pregnancy, childbirth, or related
health conditions, if she so requests. The employer may provide the accommodation
requested by the employee or an equally effective alternative. "Reasonable
accommodation" includes, but is not limited to: seating, frequent restroom breaks, and
limits to heavy lifting. The employee and employer shall engage in an interactive process
with respect to an employee's request for a reasonable accommodation. Notwithstanding
any other provision of this section, an employer shall not be required to create a new or
additional position in order to accommodate an employee pursuant to this subdivision,
and shall not be required to discharge any employee, transfer any other employee with
greater seniority, or promote any employee.
new text end

new text begin Subd. 2. new text end

new text begin Transfer. new text end

new text begin An employer must temporarily transfer a pregnant female
employee to a less strenuous or hazardous position for the duration of her pregnancy
if she so requests provided the transfer does not impose an undue hardship on the
employer. An employee requesting a temporary transfer shall be required to provide to the
employer written documentation of medical necessity by a licensed health care provider.
The employee and employer shall engage in an interactive process with respect to an
employee's request for a temporary transfer. Notwithstanding any other provision of this
section, an employer shall not be required to create a new or additional position in order
to accommodate an employee pursuant to this subdivision and shall not be required to
discharge any employee, transfer any other employee with greater seniority, or promote
any employee.
new text end

new text begin Subd. 3. new text end

new text begin Interaction with other laws. new text end

new text begin Nothing in this section shall be construed to
affect any other provision of law relating to sex discrimination or pregnancy, or in any
way to diminish the coverage of pregnancy, childbirth, or health conditions related to
pregnancy or childbirth under any other provisions of any other law.
new text end

new text begin Subd. 4. new text end

new text begin No employer retribution. new text end

new text begin An employer shall not retaliate against an
employee for requesting or obtaining accommodation under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2012, section 181.943, is amended to read:


181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of deleted text beginparentaldeleted text end leave provided under section 181.941 may be reduced
by any period of deleted text beginpaid parental or disability leave, but not accrued sick leave, provided
by the employer, so that the total leave does not exceed six weeks, unless agreed to by
the employer.
deleted text endnew text begin:
new text end

new text begin (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
new text end

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

(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.

ARTICLE 4

EMPLOYMENT PROTECTIONS

Section 1.

Minnesota Statutes 2012, section 181.939, is amended to read:


181.939 NURSING MOTHERS.

new text begin (a) new text endAn employer must provide reasonable unpaid break time each day to an
employee who needs to express breast milk for her infant child. The break time must,
if possible, run concurrently with any break time already provided to the employee. An
employer is not required to provide break time under this section if to do so would unduly
disrupt the operations of the employer.

new text begin (b) new text endThe employer must make reasonable efforts to provide a room or other location,
in close proximity to the work area, other than a toilet stall, new text beginthat is shielded from view and
free from intrusion and that includes access to an electrical outlet,
new text endwhere the employee
can express her milk in privacy. The employer would be held harmless if reasonable
effort has been made.

new text begin (c) new text endFor the purposes of this section, "employer" means a person or entity that
employs one or more employees and includes the state and its political subdivisions.

new text begin (d) A violation of this section is an unfair employment practice as provided for under
section 363A.08, subdivision 8.
new text end

Sec. 2.

Minnesota Statutes 2012, section 363A.03, is amended by adding a subdivision
to read:


new text begin Subd. 18a. new text end

new text begin Family caregiver. new text end

new text begin "Family caregiver" means a person who cares for
another person:
new text end

new text begin (1) who is related by blood, marriage, or legal custody; or
new text end

new text begin (2) with whom the person lives in a familial relationship.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 363A.08, subdivision 1, is amended to read:


Subdivision 1.

Labor organization.

Except when based on a bona fide occupational
qualification, it is an unfair employment practice for a labor organization, because of race,
color, creed, religion, national origin, sex, marital status, status with regard to public
assistance,new text begin familial status, status as a family caregiver,new text end disability, sexual orientation, or age:

(1) to deny full and equal membership rights to a person seeking membership or
to a member;

(2) to expel a member from membership;

(3) to discriminate against a person seeking membership or a member with respect
to hiring, apprenticeship, tenure, compensation, terms, upgrading, conditions, facilities,
or privileges of employment; or

(4) to fail to classify properly, or refer for employment or otherwise to discriminate
against a person or member.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 363A.08, subdivision 2, is amended to read:


Subd. 2.

Employer.

Except when based on a bona fide occupational qualification, it
is an unfair employment practice for an employer, because of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance,new text begin familial status,
status as a family caregiver,
new text end membership or activity in a local commission, disability,
sexual orientation, or age to:

(1) refuse to hire or to maintain a system of employment which unreasonably
excludes a person seeking employment; or

(2) discharge an employee; or

(3) discriminate against a person with respect to hiring, tenure, compensation, terms,
upgrading, conditions, facilities, or privileges of employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2012, section 363A.08, subdivision 3, is amended to read:


Subd. 3.

Employment agency.

Except when based on a bona fide occupational
qualification, it is an unfair employment practice for an employment agency, because of
race, color, creed, religion, national origin, sex, marital status, status with regard to public
assistance,new text begin familial status, status as a family caregiver,new text end disability, sexual orientation, or
age to:

(1) refuse or fail to accept, register, classify properly, or refer for employment or
otherwise to discriminate against a person; or

(2) comply with a request from an employer for referral of applicants for
employment if the request indicates directly or indirectly that the employer fails to comply
with the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2012, section 363A.08, subdivision 4, is amended to read:


Subd. 4.

Employer, employment agency, or labor organization.

(a) Except when
based on a bona fide occupational qualification, it is an unfair employment practice for an
employer, employment agency, or labor organization, before a person is employed by an
employer or admitted to membership in a labor organization, to:

(1) require or request the person to furnish information that pertains to race, color,
creed, religion, national origin, sex, marital status, status with regard to public assistance,
new text begin familial status,new text endnew text begin status as a family caregiver,new text end disability, sexual orientation, or age; or, subject
to section 363A.20, to require or request a person to undergo physical examination; unless
for the sole and exclusive purpose of national security, information pertaining to national
origin is required by the United States, this state or a political subdivision or agency of
the United States or this state, or for the sole and exclusive purpose of compliance with
the Public Contracts Act or any rule, regulation, or laws of the United States or of this
state requiring the information or examination. A law enforcement agency may, after
notifying an applicant for a peace officer or part-time peace officer position that the law
enforcement agency is commencing the background investigation on the applicant, request
the applicant's date of birth, gender, and race on a separate form for the sole and exclusive
purpose of conducting a criminal history check, a driver's license check, and fingerprint
criminal history inquiry. The form shall include a statement indicating why the data is
being collected and what its limited use will be. No document which has date of birth,
gender, or race information will be included in the information given to or available to
any person who is involved in selecting the person or persons employed other than the
background investigator. No person may act both as background investigator and be
involved in the selection of an employee except that the background investigator's report
about background may be used in that selection as long as no direct or indirect references
are made to the applicant's race, age, or gender; or

(2) seek and obtain for purposes of making a job decision, information from any
source that pertains to the person's race, color, creed, religion, national origin, sex,
marital status, status with regard to public assistance,new text begin familial status, status as a family
caregiver,
new text end disability, sexual orientation, or age, unless for the sole and exclusive purpose
of compliance with the Public Contracts Act or any rule, regulation, or laws of the United
States or of this state requiring the information; or

(3) cause to be printed or published a notice or advertisement that relates to
employment or membership and discloses a preference, limitation, specification, or
discrimination based on race, color, creed, religion, national origin, sex, marital status,
status with regard to public assistance,new text begin familial status,new text endnew text begin status as a family caregiver,
new text end disability, sexual orientation, or age.

(b) Any individual who is required to provide information that is prohibited by this
subdivision is an aggrieved party under sections 363A.06, subdivision 4, and 363A.28,
subdivisions 1 to 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2012, section 363A.08, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Nursing mothers. new text end

new text begin Except when based on a bona fide occupational
qualification, any violation of section 181.939 by an employer is an unfair employment
practice.
new text end

Sec. 8.

Minnesota Statutes 2012, section 363A.08, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Wage disclosure protection. new text end

new text begin (a) An employer shall not:
new text end

new text begin (1) require nondisclosure by an employee of the employee's wages as a condition of
employment;
new text end

new text begin (2) require an employee to sign a waiver or other document which purports to deny
an employee the right to disclose the employee's wages; or
new text end

new text begin (3) take any adverse employment action against an employee for disclosing the
employee's own wages or discussing another employee's wages which have been disclosed
voluntarily.
new text end

new text begin (b) Nothing in this section shall be construed to:
new text end

new text begin (1) create an obligation on any employer or employee to disclose wages;
new text end

new text begin (2) permit an employee, without the written consent of the employer, to disclose
proprietary information, trade secret information, or information that is otherwise subject
to a legal privilege or protected by law;
new text end

new text begin (3) diminish any existing rights under the National Labor Relations Act under
United States Code, title 29; or
new text end

new text begin (4) permit the employee to disclose wage information to a competitor of their
employer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 5

EARLY CHILDHOOD

Section 1.

Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3,
is amended to read:


Subd. 3.

Administration.

(a) The commissioner shall establish application
timelines and determine the schedule for awarding scholarships that meets operational
needs of eligible families and programs. The commissioner may prioritize applications on
factors including family income, geographic location, and whether the child's family is on a
waiting list for a publicly funded program providing early education or child care services.

(b) Scholarships may be awarded deleted text beginupdeleted text end to deleted text begin$5,000 fordeleted text end each eligible childnew text begin. The
commissioner shall establish a target for the average scholarship amount per child
based on the results of the rate survey conducted under section 119B.13, subdivision 1,
paragraph (b),
new text end per year.

(c) A four-star rated program that has children eligible for a scholarship enrolled
in or on a waiting list for a program beginning in July, August, or September may notify
the commissioner, in the form and manner prescribed by the commissioner, each year
of the program's desire to enhance program services or to serve more children than
current funding provides. The commissioner may designate a predetermined number of
scholarship slots for that program and notify the program of that number.

(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
not been accepted and subsequently enrolled in a rated program within ten months of the
awarding of the scholarship, the scholarship cancels and the recipient must reapply in
order to be eligible for another scholarship. A child may not be awarded more than one
scholarship in a 12-month period.

(e) A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 90
days of first attending an eligible program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end