HF 4286

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 12:17pm

A bill for an act
relating to labor standards; making policy and technical changes; amending
Minnesota Statutes 2022, sections 13.79, subdivision 1; 177.30; 181.941,
subdivision 4; 181.943; 181A.08; 181A.12, subdivision 1, by adding subdivisions;
Minnesota Statutes 2023 Supplement, sections 116J.871, subdivision 1; 177.27,
subdivisions 2, 4, 7; 177.42, subdivision 2; 181.212, subdivision 7; 181.939,
subdivision 2.

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

Section 1.

Minnesota Statutes 2022, section 13.79, subdivision 1, is amended to read:

Subdivision 1.

Identity of deleted text begin employees making complaints deleted text end new text begin complainants new text end .

Data that
identify deleted text begin complaining employees and that appear on complaint forms received by deleted text end new text begin individuals
who have complained to new text end the Department of Labor and Industry concerning alleged violations
of deleted text begin the Fair Labor Standards Act, section 181.75 or 181.9641, deleted text end new text begin chapter 177; chapter 181;
sections 179.86 to 179.877; chapter 181A; or rules adopted pursuant to these statutes, new text end are
classified as private data. new text begin The commissioner may disclose this data to other government
entities with written consent from the complainant if the commissioner determines that the
disclosure furthers an enforcement action of the Department of Labor and Industry or another
government entity.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Economic development" means financial assistance provided to a person directly
or to a local unit of government or nonprofit organization on behalf of a person who is
engaged in the manufacture or sale of goods and services. Economic development does not
include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance
for new housing construction in which total financial assistance at a single project site is
less than $100,000; or (3) financial assistance for the new construction of fully detached
single-family affordable homeownership units for which the financial assistance covers no
more than ten fully detached single-family affordable homeownership units. For purposes
of this paragraph, "affordable homeownership" means housing targeted at households with
incomes, at initial occupancy, at or below 115 percent of the state or area median income,
whichever is greater, as determined by the United States Department of Housing and Urban
Development.

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives $200,000 or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives $500,000 or more of
the loan proceeds; deleted text begin or deleted text end (3) a reduction, credit, or abatement of a tax assessed under chapter
297A where the tax reduction, credit, or abatement applies to a geographic area smaller
than the entire state and was granted for economic development related purposes new text begin ; or (4) a
construction exemption to a city or school district under section 297A.71 or special law new text end .
Financial assistance does not include payments by the state of aids and credits under chapter
273 or 477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed in
whole or in part by the financial assistance; or the location of employees that receive financial
assistance in the form of employment and training services as defined in section 116L.19,
subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

Sec. 3.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended
to read:

Subd. 2.

Submission of records; penalty.

new text begin (a) new text end The commissioner may require the
employer of employees working in the state to submit to the commissioner photocopies,
certified copies, or, if necessary, the originals of employment records which the commissioner
deems necessary or appropriate. The records which may be required include full and correct
statements in writing, including sworn statements by the employer, containing information
relating to wages, hours, names, addresses, and any other information pertaining to the
employer's employees and the conditions of their employment as the commissioner deems
necessary or appropriate.

new text begin (b) Employers and persons requested by the commissioner to produce records shall
respond within the time and in the manner specified by the commissioner.
new text end

new text begin (c) new text end The commissioner may require the records to be submitted by certified mail delivery
or, if necessary, by personal delivery by the employer or a representative of the employer,
as authorized by the employer in writing.

new text begin (d) new text end The commissioner may fine the employer up to $10,000 for each failure to submit
or deliver records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.

Sec. 4.

Minnesota Statutes 2023 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, 179.86, 181.02, 181.03, 181.031,
181.032, new text begin 181.10, new text end 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172,
paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, new text begin 181.64, new text end 181.722,
181.79, 181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991,
268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under
section 177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an
employer to comply with sections 177.41 to 177.435, 181.165, or 181.987 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, 181.165, or 181.987 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 or 181.165. 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. For the purposes of this subdivision, an employer includes a contractor that
has assumed a subcontractor's liability within the meaning of section 181.165.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended
to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have
violated a section identified in subdivision 4, or any rule adopted under section 177.28,
181.213, or 181.215, 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 damages, less any amount
actually paid to the employee by the employer, and for an additional equal amount as
liquidated damages. new text begin The commissioner may also order reinstatement and any other
appropriate relief to the aggrieved parties. new text end Any employer who is found by the commissioner
to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall
be subject to a civil penalty of up to $10,000 for each violation for each employee. In
determining the amount of a civil penalty under this subdivision, the appropriateness of
such 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, then 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 costs of services rendered by the attorney general, private attorneys
if engaged by the department, administrative law judges, court reporters, and expert witnesses
as well as the cost of transcripts. 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.

Sec. 6.

Minnesota Statutes 2022, section 177.30, is amended to read:

177.30 KEEPING RECORDS; PENALTY.

(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record
of:

(1) the name, address, and occupation of each employee;

(2) the rate of pay, and the amount paid each pay period to each employee;

(3) the hours worked each day and each workweek by the employee, including for all
employees paid at piece rate, the number of pieces completed at each piece rate;

(4) a list of the personnel policies provided to the employee, including the date the
policies were given to the employee and a brief description of the policies;

(5) a copy of the notice provided to each employee as required by section 181.032,
paragraph (d), including any written changes to the notice under section 181.032, paragraph
(f);

(6) for each employer subject to sections 177.41 to 177.44, and while performing work
on public works projects funded in whole or in part with state funds, the employer shall
furnish under oath signed by an owner or officer of an employer to the contracting authority
and the project owner every two weeks, a certified payroll report with respect to the wages
and benefits paid each employee during the preceding weeks specifying for each employee:
name; identifying number; prevailing wage master job classification; hours worked each
day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions;
net pay for week; dollars contributed per hour for each benefit, including name and address
of administrator; benefit account number; and telephone number for health and welfare,
vacation or holiday, apprenticeship training, pension, and other benefit programs; deleted text begin and
deleted text end

(7) new text begin earnings statements for each employee for each pay period as required by section
181.032, paragraphs (a) and (b); and
new text end

new text begin (8) new text end other information the commissioner finds necessary and appropriate to enforce
sections 177.21 to 177.435. The records must be kept for three years in the premises where
an employee works except each employer subject to sections 177.41 to 177.44, and while
performing work on public works projects funded in whole or in part with state funds, the
records must be kept for three years after the contracting authority has made final payment
on the public works project.

(b) All records required to be kept under paragraph (a) must be readily available for
inspection by the commissioner upon demand. The records must be either kept at the place
where employees are working or kept in a manner that allows the employer to comply with
this paragraph within 72 hours.

(c) The commissioner may fine an employer up to $1,000 for each failure to maintain
records as required by this section, and up to $5,000 for each repeated failure. This penalty
is in addition to any penalties provided under section 177.32, subdivision 1. In determining
the amount of a civil penalty under this subdivision, the appropriateness of such penalty to
the size of the employer's business and the gravity of the violation shall be considered.

(d) If the records maintained by the employer do not provide sufficient information to
determine the exact amount of back wages due an employee, the commissioner may make
a determination of wages due based on available evidence.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 177.42, subdivision 2, is amended
to read:

Subd. 2.

Project.

"Project" means demolition, erection, construction, new text begin alteration,
improvement, restoration, new text end remodeling, or repairing of a public building, new text begin structure, new text end facility, new text begin
land, new text end or other public work new text begin , which includes any work suitable for and intended for use by
the public, or for the public benefit, new text end financed in whole or part by state funds. Project also
includes demolition, erection, construction, new text begin alteration, improvement, restoration, new text end remodeling,
or repairing of a building, new text begin structure, new text end facility, new text begin land, new text end or public work when the acquisition of
property, predesign, design, or demolition is financed in whole or part by state funds.

Sec. 8.

Minnesota Statutes 2023 Supplement, section 181.212, subdivision 7, is amended
to read:

Subd. 7.

Voting.

The affirmative vote of five board members is required for the board
to take any action, including actions necessary to establish minimum nursing home
employment standards under section 181.213. new text begin At least two of the five affirmative votes
must be cast by the commissioner members or their appointees.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 181.939, subdivision 2, is amended
to read:

Subd. 2.

Pregnancy accommodations.

(a) An employer must provide reasonable
accommodations to an employee for health conditions related to pregnancy or childbirth
upon request, with the advice of a licensed health care provider or certified doula, unless
the employer demonstrates that the accommodation would impose an undue hardship on
the operation of the employer's business. A pregnant employee shall not be required to
obtain the advice of a licensed health care provider or certified doula, nor may an employer
claim undue hardship for the following accommodations: (1) more frequent or longer
restroom, food, and water breaks; (2) seating; and (3) limits on lifting over 20 pounds. The
employee and employer shall engage in an interactive process with respect to an employee's
request for a reasonable accommodation. Reasonable accommodation may include but is
not limited to temporary transfer to a less strenuous or hazardous position, temporary leave
of absence, modification in work schedule or job assignments, seating, more frequent or
longer break periods, and limits to heavy lifting. Notwithstanding any other provision of
this subdivision, 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 an employee, transfer another employee with greater seniority, or promote an
employee.

(b) Nothing in this subdivision shall be construed to affect any other provision of law
relating to sex discrimination or pregnancy or in any way diminish the coverage of pregnancy,
childbirth, or health conditions related to pregnancy or childbirth under any other provisions
of any other law.

(c) An employer shall not require an employee to take a leave or accept an
accommodation.

(d) An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain,
coerce, or otherwise retaliate or discriminate against an employee for asserting rights or
remedies under this subdivision.

(e) For the purposes of this subdivision, "employer" means a person or entity that employs
one or more employees and includes the state and its political subdivisions.

new text begin (f) During any leave for which an employee is entitled to benefits or leave under this
subdivision, the employer must maintain coverage under any group insurance policy, group
subscriber contract, or health care plan for the employee and any dependents as if the
employee was not on leave, provided, however, that the employee must continue to pay any
employee share of the cost of the benefits.
new text end

Sec. 10.

Minnesota Statutes 2022, section 181.941, subdivision 4, is amended to read:

Subd. 4.

Continued insurance.

deleted text begin 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. deleted text end new text begin During any leave for which an employee is entitled to benefits or
leave under this section, the employer must maintain coverage under any group insurance
policy, group subscriber contract, or health care plan for the employee and any dependents
as if the employee was not on leave, provided, however, that the employee must continue
to pay any employee share of the cost of the benefits.
new text end

Sec. 11.

Minnesota Statutes 2022, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of leave provided under section 181.941 may be reduced by any period
of:

(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

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

(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.

new text begin (c) Notwithstanding paragraphs (a) and (b), the length of leave provided under section
181.941 must not be reduced by any period of paid or unpaid leave taken for prenatal care
medical appointments.
new text end

Sec. 12.

Minnesota Statutes 2022, section 181A.08, is amended to read:

181A.08 POWERS AND DUTIES OF THE DEPARTMENT.

Subdivision 1.

Inspections.

The commissioner, an authorized representative, or any
truant officer may enter and inspect the place of business or employment and may interview
any employees, of any employer of employees in any occupation in the state, all for the
purpose of ascertaining whether any minors are employed contrary to the provisions of
sections 181A.01 to 181A.12. Such authorized persons may require that employment
certificates, age certificates, and lists of minors employed shall be produced for their
inspection.

Subd. 2.

Compliance orders.

The commissioner or an authorized representative may
issue an order requiring an employer to comply with the provisions of sections 181A.01 to
181A.12 or with any rules promulgated under the provisions of section 181A.09. Any such
order shall be served by the department upon the employer or an authorized representative
in person or by certified mail at the employers place of business. If an employer wishes to
contest the order for any reason, the employer shall file written notice of objection with the
commissioner within deleted text begin ten deleted text end new text begin 15 calendar new text end days after service of said order upon said employer.
Thereafter, a public hearing shall be held in accordance with the provisions of sections 14.57
to 14.69, and such rules consistent therewith as the commissioner shall make. new text begin 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

new text begin Subd. 2a. 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 any provision of sections 181A.01 to 181A.12, or any rules promulgated under
section 181A.09, and the commissioner issues an order to comply under subdivision 2, the
commissioner shall order the employer to cease and desist from engaging in the violative
practice and to take affirmative steps that in the judgment of the commissioner will effectuate
the purposes of the section or rule violated. The commissioner may order the employer to
reimburse the department and the attorney general for 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, then 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 costs of services rendered by the attorney general, private
attorneys if engaged by the department, administrative law judges, court reporters, and
expert witnesses as well as the cost of transcripts. 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).
new text end

Subd. 3.

Restraining orders.

The commissioner or an authorized representative may
apply to any court of competent jurisdiction for an order restraining the violation of an order
issued by the commissioner pursuant to subdivision 2, or for an order enjoining and
restraining violations of this chapter or rules adopted pursuant to section 181A.09.

Sec. 13.

Minnesota Statutes 2022, section 181A.12, subdivision 1, is amended to read:

Subdivision 1.

Fines; penalty.

(a) Any employer who hinders or delays the department
or its authorized representative in the performance of its duties under sections 181A.01 to
181A.12 or refuses to admit the commissioner or an authorized representative to any place
of employment or refuses to make certificates or lists available as required by sections
181A.01 to 181A.12, or otherwise violates any provisions of sections 181A.01 to 181A.12
or any rules issued pursuant thereto shall be assessed a fine to be paid to the commissioner
for deposit in the general fund. The fine may be recovered in a civil action in the name of
the department brought in the district court of the county where the violation is alleged to
have occurred or the district court where the commissioner has an office. Fines are deleted text begin in deleted text end new text begin up to new text end
the amounts as follows new text begin for each violation new text end :

	(1)	employment of minors under the age of 14 (each employee)		$	500
	(2)	employment of minors under the age of 16 during school hours while school is in session (each employee)			500
	(3)	employment of minors under the age of 16 before 7:00 a.m. (each employee)			500
	(4)	employment of minors under the age of 16 after 9:00 p.m. (each employee)			500
	(5)	employment of a high school student under the age of 18 in violation of section 181A.04, subdivision 6 (each employee)			1,000
	(6)	employment of minors under the age of 16 over eight hours a day (each employee)			500
	(7)	employment of minors under the age of 16 over 40 hours a week (each employee)			500
	(8)	employment of minors under the age of 18 in occupations hazardous or detrimental to their well-being as defined by rule (each employee)			1,000
	(9)	employment of minors under the age of 16 in occupations hazardous or detrimental to their well-being as defined by rule (each employee)			1,000
	(10)	minors under the age of 18 injured in hazardous employment (each employee)			5,000
	(11)	minors employed without proof of age (each employee)			250

(b) An employer who refuses to make certificates or lists available as required by sections
181A.01 to 181A.12 shall be assessed a $500 fine.

new text begin (c) Notwithstanding the factors in section 14.045, subdivision 3, the commissioner need
only consider the size of the business of the employer, the gravity of the violation, and the
history of previous violations when determining the total amount of fines to issue under
this subdivision.
new text end

Sec. 14.

Minnesota Statutes 2022, section 181A.12, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Liquidated damages. new text end

new text begin An employer who employs a minor in violation of section
181A.04, subdivision 5, may be liable to the minor for an amount equal to the minor's regular
rate of pay for all hours worked in violation of section 181A.04, subdivision 5, as liquidated
damages, in addition to the wages earned by the minor.
new text end

Sec. 15.

Minnesota Statutes 2022, section 181A.12, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Retaliation. new text end

new text begin An employer shall not discharge, discipline, penalize, interfere
with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee
for asserting rights or remedies under sections 181A.01 to 181A.12 or any rules promulgated
under section 181A.09, including but not limited to filing a complaint with the department,
informing the employer of the employee's intention to file a complaint, or participating in
an investigation by the department. In addition to any other remedies provided by law, the
commissioner may order an employer in violation of this subdivision to provide back pay,
compensatory damages, reinstatement, and any other appropriate relief to the aggrieved
employee.
new text end