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HF 3010

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/21/2022 03:45pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to employment; prohibiting payment of certain sexual harassment or abuse
settlements as severance; allowing a state income tax subtraction for certain
damages received; amending Minnesota Statutes 2020, section 290.0132, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapter 181.

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

Section 1.

new text begin [181.141] SEXUAL HARASSMENT OR ABUSE SETTLEMENT;
PAYMENT AS SEVERANCE OR WAGES PROHIBITED.
new text end

new text begin In a sexual harassment or abuse settlement between an employer and an employee, when
there is a financial settlement provided, the financial settlement cannot be provided as wages
or severance pay to the employee when the settlement includes a nondisclosure agreement.
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. 2.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin Damages for sexual harassment or abuse. new text end

new text begin The amount of qualifying damages
received is a subtraction. For purposes of this subdivision, "qualifying damages" means:
new text end

new text begin (1) damages received under a sexual harassment or abuse claim that are not excluded
from gross income under section 104(a)(2) of the Internal Revenue Code because the injury
or sickness for which the damages are paid are not physical; or
new text end

new text begin (2) severance pay received under a financial settlement of a sexual harassment or abuse
claim that does not include a nondisclosure agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end