HF 3846

as introduced - 89th Legislature (2015 - 2016) Posted on 04/07/2016 02:54pm

A bill for an act
relating to employment; workers' compensation; modifying wage theft
provisions; amending Minnesota Statutes 2014, sections 176.071; 181.13;
181.14, subdivisions 2, 3; Minnesota Statutes 2015 Supplement, sections
177.27, subdivision 4; 181.171, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 181.

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

ARTICLE 1

EMPLOYEE RIGHTS INFORMATION FOR NEW MINNESOTANS

Section 1.

Minnesota Statutes 2015 Supplement, section 177.27, subdivision 4, is
amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, new text begin 181.003, new text end 181.02, 181.03, 181.031,
181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or
(d), 181.275, subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, or with any rule
promulgated under section 177.28. The commissioner shall issue an order requiring an
employer to comply with sections 177.41 to 177.435 if the violation is repeated. For
purposes of this subdivision only, a violation is repeated if at any time during the two years
that preceded the date of violation, the commissioner issued an order to the employer for
violation of sections 177.41 to 177.435 and the order is final or the commissioner and the
employer have entered into a settlement agreement that required the employer to pay back
wages that were required by sections 177.41 to 177.435. 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.

Sec. 2.

new text begin [181.003] TEMPORARY WORKER RIGHTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "employee leasing
company" means a person or entity engaged in labor leasing, staff leasing, employee
leasing, employee staffing or supply, or other arrangement, under contract or otherwise,
whereby one person or entity leases or obtains employees from that person or entity.
new text end

new text begin Subd. 2. new text end

new text begin Disclosures required. new text end

new text begin (a) An employee leasing company must provide to
each employee, upon assignment or placement or start of a temporary job, a written notice
in English, Hmong, Somali, and Spanish, of the following:
new text end

new text begin (1) the name, address, and telephone number of: (i) the employee leasing company;
(ii) the employee leasing company's workers' compensation carrier; (iii) the name, address,
and telephone number of the work site employer; and (iv) the work site employer's
workers' compensation carrier;
new text end

new text begin (2) a description of the position and whether the position will require any special
clothing, equipment, training, or licenses and any costs to be charged to the employee for
such supplies or training;
new text end

new text begin (3) the designated pay day, the hourly rate of pay, and whether and how overtime
pay may occur;
new text end

new text begin (4) the daily starting time and anticipated end time and, when known, the expected
duration of assignment, placement, or temporary job;
new text end

new text begin (5) whether any meals will be provided by the employee leasing company or work
site employer and the charge, if any, to the employee;
new text end

new text begin (6) details regarding transportation to the work site and any fees charged to the
employee by the employee leasing company or work site employer for any transportation
services; and
new text end

new text begin (7) the written notice described in section 181.004.
new text end

new text begin (b) The employee leasing company, work site employer, or temporary employer
must post the written notice required under paragraph (a) in a conspicuous place in any
areas where an employee is likely to see and have time to read the notice.
new text end

Sec. 3.

new text begin [181.004] CREATION OF MATERIALS.
new text end

new text begin (a) The commissioner of labor and industry must create, no later that January 1,
2017, a written notice including short and simple explanations, in English, Hmong,
Somali, and Spanish, of the following:
new text end

new text begin (1) applicable federal and state minimum wage and overtime protections;
new text end

new text begin (2) Minnesota Occupational Health and Safety protections;
new text end

new text begin (3) Minnesota workers' compensation laws;
new text end

new text begin (4) Minnesota unemployment insurance laws; and
new text end

new text begin (5) contact information for the Department of Labor and Industry Labor Standards
Division.
new text end

new text begin (b) The commissioner must provide an electronic copy of the notice on the
department's Web site.
new text end

new text begin (c) The commissioner must update the notice as necessary to reflect changes in
the law.
new text end

ARTICLE 2

WORKERS' COMPENSATION REFORM

Section 1.

Minnesota Statutes 2014, section 176.071, is amended to read:

176.071 JOINT EMPLOYERS; CONTRIBUTION.

new text begin (a) The provisions in this paragraph do not apply to the joint employers described in
paragraph (b). new text end When compensation is payable under this chapter for the injury or death
of an employee employed and paid jointly by two or more employers at the time of the
injury or death these employers shall contribute to the payment of the compensation in
the proportion of their wage liabilities to the employee. If any such employer is excluded
from the provisions of this chapter and is not liable for compensation, the liability of those
employers who are liable for compensation is the proportion of the entire compensation
which their wage liability bears to the employee's entire wages. As between themselves
such employers may arrange for a different distribution of payment of the compensation
for which they are liable.

new text begin (b) The provisions of this paragraph apply to employers, joint or otherwise, that are
employee leasing entities, as described in section 79.255, or any other type of employee
leasing entity or temporary staffing entity. When compensation is payable under this
chapter for the injury or death of an employee of such an employer, that employer is liable
for payment of the entire compensation. Such employers may seek indemnification from
joint employers for the portion of the compensation equal to the proportion of any joint
employers' wage liabilities to the employee that would otherwise apply.
new text end

ARTICLE 3

WAGE THEFT

Section 1.

Minnesota Statutes 2014, section 181.13, is amended to read:

181.13 PENALTY FOR FAILURE TO PAY WAGES PROMPTLY.

(a) When any employer employing labor within this state discharges an employee,
the wages or commissions actually earned and unpaid at the time of the discharge are
immediately due and payable upon demand of the employee. Wages are actually earned
and unpaid if the employee was not paid for all time worked at the employee's regular rate
of pay or at the rate required by law, including any applicable statute, regulation, rule,
ordinance, government resolution or policy, contract, or other legal authority, whichever
rate of pay is greater. If the employee's earned wages and commissions are not paid within
24 hours after demand, whether the employment was by the day, hour, week, month, or
piece or by commissions, the employer is in default. In addition to recovering the wages
and commissions actually earned and unpaid, the discharged employee may charge and
collect a penalty equal to the amount of new text begin four times new text end the employee's average daily earnings
at the employee's regular rate of pay or the rate required by law, whichever rate is greater,
for each day up to deleted text begin 15 deleted text end new text begin 100 new text end days, that the employer is in default, until full payment or
other settlement, satisfactory to the discharged employee, is made. In the case of a public
employer where approval of expenditures by a governing board is required, the 24-hour
period for payment does not commence until the date of the first regular or special meeting
of the governing board following discharge of the employee. An employee's demand for
payment under this section must be in writing but need not state the precise amount of
unpaid wages or commissions. An employee may directly seek and recover payment from
an employer under this section even if the employee is not a party to a contract that requires
the employer to pay the employee at the rate of pay demanded by the employee, so long as
the contract or any applicable statute, regulation, rule, ordinance, government resolution
or policy, or other legal authority requires payment to the employee at the particular rate of
pay. The employee shall be able to directly seek payment at the highest rate of pay provided
in the contract or applicable law, and any other related remedies as provided in this section.

(b) The wages and commissions must be paid in the usual manner of payment unless
the employee requests that the wages and commissions be sent through the mails. If, in
accordance with a request by the employee, the employee's wages and commissions are
sent to the employee through the mail, the wages and commissions are paid as of the date
of their postmark.

Sec. 2.

Minnesota Statutes 2014, section 181.14, subdivision 2, is amended to read:

Subd. 2.

Nonprompt payment.

Wages or commissions not paid within the required
time period shall become immediately payable upon the demand of the employee. If the
employee's earned wages or commissions are not paid within 24 hours after the demand,
the employer shall be liable to the employee for a penalty equal to new text begin four times new text end the amount
of the employee's average daily earnings at the employee's regular rate of pay or the rate
required by law, whichever rate is greater, for every day, not exceeding deleted text begin 15 deleted text end new text begin 100 new text end days in
all, until such payment or other settlement satisfactory to the employee is made. The
employer shall also be liable to the employee for the amount of wages and commissions
that are earned and unpaid. An employee's demand for payment under this section must
be in writing but need not state the precise amount of unpaid wages or commissions. An
employee may directly seek and recover payment from an employer under this section even
if the employee is not a party to a contract that requires the employer to pay the employee
at the rate of pay demanded by the employee, so long as the contract or any applicable
statute, regulation, rule, ordinance, government resolution or policy, or other legal
authority requires payment to the employee at the particular rate of pay. The employee
shall be able to directly seek payment at the highest rate of pay provided in the contract or
applicable law, and any other remedies related thereto as provided in this section.

Sec. 3.

Minnesota Statutes 2014, section 181.14, subdivision 3, is amended to read:

Subd. 3.

Settlement of disputes.

If the employer disputes the amount of wages
or commissions claimed by the employee under the provisions of this section or section
181.13, and the employer makes a legal tender of the amount deleted text begin which deleted text end the deleted text begin employer deleted text end new text begin
employee new text end in good faith claims to be due, the employer shall not be liable for any sum
greater than the amount so tendered and interest thereon at the legal rate, unless, in an
action brought in a court having jurisdiction, the employee recovers a greater sum than the
amount so tendered with interest thereon; and if, in the suit, the employee fails to recover
a greater sum than that so tendered, with interest, the employee shall not pay the cost of
the suit, otherwise the cost shall be paid by the employer.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 181.171, subdivision 1, is
amended to read:

Subdivision 1.

Civil action; damages.

A person may bring a civil action seeking
redress for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09,
181.10, 181.101, 181.11, 181.13, 181.14, 181.145, and 181.15 directly to district court. An
employer who is found to have violated the above sections is liable to the aggrieved party
for the civil penalties or damages provided for in the section violated. An employer who is
found to have violated the above sections shall also be liable for compensatory damages and
other appropriate relief including but not limited to injunctive relief new text begin and punitive damages new text end .