HF 5

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 02/21/2019 04:28pm

A bill for an act
relating to employment; providing for paid family, pregnancy, bonding, and
applicant's serious medical condition benefits; regulating and requiring certain
employment leaves; classifying certain data; authorizing rulemaking; appropriating
money; amending Minnesota Statutes 2018, sections 13.719, by adding a
subdivision; 177.27, subdivision 4; 181.032; 256J.561, by adding a subdivision;
256J.95, subdivisions 3, 11; 256P.01, subdivision 3; 268.19, subdivision 1;
290.0132, by adding a subdivision; proposing coding for new law as Minnesota
Statutes, chapter 268B.

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

ARTICLE 1

FAMILY AND MEDICAL BENEFITS

Section 1.

Minnesota Statutes 2018, section 13.719, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Family and medical insurance data. new text end

new text begin (a) For the purposes of this subdivision,
the terms used have the meanings given them in section 268B.01.
new text end

new text begin (b) Data on applicants, family members, or employers under chapter 268B are private
or nonpublic data, provided that the department may share data collected from applicants
with employers or health care providers to the extent necessary to meet the requirements
of chapter 268B or other applicable law.
new text end

Sec. 2.

Minnesota Statutes 2018, 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, 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 deleted text begin , deleted text end new text begin ; chapter 268B; new text end 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. 3.

Minnesota Statutes 2018, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER.

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statements.

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the hourly rate of pay (if applicable);

(3) the total number of hours worked by the employee unless exempt from chapter 177;

(4) the total amount of gross pay earned by the employee during that period;

(5) a list of deductions made from the employee's pay;

new text begin (6) any amount deducted, and the maximum allowed to be deducted, under section
268B.12, subdivision 2;
new text end

deleted text begin (6) deleted text end new text begin (7) new text end the net amount of pay after all deductions are made;

deleted text begin (7) deleted text end new text begin (8) new text end the date on which the pay period ends; and

deleted text begin (8) deleted text end new text begin (9) new text end the legal name of the employer and the operating name of the employer if different
from the legal name.

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

Sec. 4.

Minnesota Statutes 2018, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under
chapter 119B, or medical programs under chapter 256B or 256L or formerly codified under
chapter 256D;

(11) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(12) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(13) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(14) the Department of Health for the purposes of epidemiologic investigations;

(15) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

(16) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201; deleted text begin and
deleted text end

(17) the Office of Higher Education for purposes of supporting program improvement,
system evaluation, and research initiatives including the Statewide Longitudinal Education
Data System deleted text begin . deleted text end new text begin ; and
new text end

new text begin (18) the Family and Medical Benefits Division of the Department of Employment and
Economic Development to be used as necessary to administer chapter 268B.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

Sec. 5.

new text begin [268B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Account. new text end

new text begin "Account" means the family and medical benefit insurance account
in the special revenue fund in the state treasury under section 268B.02.
new text end

new text begin Subd. 3. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual applying for benefits under this
chapter.
new text end

new text begin Subd. 4. new text end

new text begin Applicant's average weekly wage. new text end

new text begin "Applicant's average weekly wage" means
an amount equal to the applicant's high quarter wage credits divided by 13.
new text end

new text begin Subd. 5. new text end

new text begin Benefit. new text end

new text begin "Benefit" or "benefits" mean monetary payments under this chapter
associated with qualifying bonding, family care, pregnancy, serious health condition,
qualifying exigency, or safety leave events.
new text end

new text begin Subd. 6. new text end

new text begin Benefit year. new text end

new text begin "Benefit year" means a period of 52 consecutive calendar weeks
beginning on the first day of a leave approved for benefits under this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Bonding. new text end

new text begin "Bonding" means time spent by an applicant who is a biological,
adoptive, or foster parent with a biological, adopted, or foster child in conjunction with the
child's birth, adoption, or placement.
new text end

new text begin Subd. 8. new text end

new text begin Calendar day. new text end

new text begin "Calendar day" means a fixed 24-hour period corresponding to
a single calendar date.
new text end

new text begin Subd. 9. new text end

new text begin Calendar week. new text end

new text begin "Calendar week" means a period of seven consecutive calendar
days.
new text end

new text begin Subd. 10. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 11. new text end

new text begin Covered business entity. new text end

new text begin "Covered business entity" means a person or entity
that contracts with self-employed individuals for services and is required to report the
payment for services to those individuals on Internal Revenue Service Form 1099-MISC
for more than 50 percent of the person's or entity's workforce.
new text end

new text begin Subd. 12. new text end

new text begin Covered employment. new text end

new text begin "Covered employment" has the meaning given in
section 268.035, subdivision 12.
new text end

new text begin Subd. 13. new text end

new text begin Covered service member. new text end

new text begin "Covered service member" means either:
new text end

new text begin (1) a current member of the United States armed forces, including a member of the
National Guard or reserves, who:
new text end

new text begin (i) has a serious health condition; and
new text end

new text begin (ii) is otherwise on the temporary disability retired list for a serious injury or illness that
was incurred by the service member in the line of duty on active duty in the United States
armed forces or a serious injury or illness that existed before the beginning of the service
member's active duty and was aggravated by service in the line of duty in the United States
armed forces; or
new text end

new text begin (2) a former member of the United States armed forces, including a member of the
National Guard or reserves, who has a serious health condition that was incurred by the
member in the line of duty on active duty in the United States armed forces or a serious
health condition that existed before the beginning of the service member's active duty and
was aggravated by service in the line of duty on active duty in the United States armed
forces and manifested before or after the member was discharged or released from service.
new text end

new text begin Subd. 14. new text end

new text begin Day. new text end

new text begin "Day" means an eight-hour period.
new text end

new text begin Subd. 15. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Employment and
Economic Development.
new text end

new text begin Subd. 16. new text end

new text begin Employee. new text end

new text begin "Employee" means an individual for whom premiums are paid on
wages under this chapter. An individual with income earned in the state from a covered
business entity, reported on an Internal Revenue Service Form 1099-MISC, is considered
an employee for the purposes of this chapter.
new text end

new text begin Subd. 17. new text end

new text begin Employer. new text end

new text begin "Employer" means a person or entity, other than an employee,
required to pay premiums under this chapter.
new text end

new text begin Subd. 18. new text end

new text begin Family benefit program. new text end

new text begin "Family benefit program" means the program
administered under this chapter for the collection of premiums and payment of benefits
related to family care, bonding, safety leave, and leave related to a qualifying exigency.
new text end

new text begin Subd. 19. new text end

new text begin Family care. new text end

new text begin "Family care" means an applicant caring for a family member
with a serious health condition or caring for a family member who is a covered service
member.
new text end

new text begin Subd. 20. new text end

new text begin Family member. new text end

new text begin "Family member" means an employee's child, adult child,
spouse, sibling, parent, foster parent, parent-in-law, grandchild, grandparent, domestic
partner, stepparent, or any individual related by blood or affinity whose close association
with the employee is the equivalent of a family relationship.
new text end

new text begin Subd. 21. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" means an individual who is
licensed, certified, or otherwise authorized under law to practice in the individual's scope
of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice
registered nurse, optometrist, licensed psychologist, licensed independent clinical social
worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides manual
manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray.
new text end

new text begin Subd. 22. new text end

new text begin High quarter. new text end

new text begin "High quarter" has the meaning given in section 268.035,
subdivision 19.
new text end

new text begin Subd. 23. new text end

new text begin Maximum weekly benefit amount. new text end

new text begin "Maximum weekly benefit amount"
means the state's average weekly wage as calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 24. new text end

new text begin Medical benefit program. new text end

new text begin "Medical benefit program" means the program
administered under this chapter for the collection of premiums and payment of benefits
related to an applicant's serious health condition or pregnancy.
new text end

new text begin Subd. 25. new text end

new text begin Noncovered employment. new text end

new text begin "Noncovered employment" has the meaning given
in section 268.035, subdivision 20.
new text end

new text begin Subd. 26. new text end

new text begin Pregnancy. new text end

new text begin "Pregnancy" means prenatal care or incapacity due to pregnancy,
or recovery from childbirth, still birth, miscarriage, or related health conditions.
new text end

new text begin Subd. 27. new text end

new text begin Qualified health care provider. new text end

new text begin "Qualified health care provider" means a
health care provider who, in the judgment of the commissioner, has the qualifications
necessary to diagnose or treat a particular health condition or conditions associated with
benefits sought under this chapter.
new text end

new text begin Subd. 28. new text end

new text begin Qualifying exigency. new text end

new text begin "Qualifying exigency" means a need arising out of an
employee's family member's active duty service or notice of an impending call or order to
active duty in the United States armed forces, including providing for the care or other needs
of the family member's child or other dependent, making financial or legal arrangements
for the family member, attending counseling, attending military events or ceremonies,
spending time with the family member during a rest and recuperation leave or following
return from deployment, or making arrangements following the death of the military member.
new text end

new text begin Subd. 29. new text end

new text begin Safety leave. new text end

new text begin "Safety leave" means leave from work because of domestic
abuse, sexual assault, or stalking of the employee or employee's family member, provided
the leave is to:
new text end

new text begin (1) seek medical attention related to the physical or psychological injury or disability
caused by domestic abuse, sexual assault, or stalking;
new text end

new text begin (2) obtain services from a victim services organization;
new text end

new text begin (3) obtain psychological or other counseling;
new text end

new text begin (4) seek relocation due to the domestic abuse, sexual assault, or stalking; or
new text end

new text begin (5) seek legal advice or take legal action, including preparing for or participating in any
civil or criminal legal proceeding related to, or resulting from, the domestic abuse, sexual
assault, or stalking.
new text end

new text begin Subd. 30. new text end

new text begin Self-employed individual. new text end

new text begin "Self-employed individual" means an individual
resident of the state who is a sole proprietor, member of a limited liability company or
limited liability partnership, or an individual whose net profit or loss from a business is
required to be reported to the Department of Revenue.
new text end

new text begin Subd. 31. new text end

new text begin Serious health condition. new text end

new text begin "Serious health condition" means an illness, injury,
impairment, or physical or mental condition that involves:
new text end

new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or
new text end

new text begin (2) continuing treatment by a health care provider.
new text end

new text begin Subd. 32. new text end

new text begin State's average weekly wage. new text end

new text begin "State's average weekly wage" means the
weekly wage calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 33. new text end

new text begin Wage credits. new text end

new text begin "Wage credits" has the meaning given in section 268.035,
subdivision 27.
new text end

Sec. 6.

new text begin [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE PROGRAM
CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin A family and medical benefit insurance program is created to
be administered by the commissioner according to the terms of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Creation of division. new text end

new text begin A Family and Medical Benefit Insurance Division is
created within the department under the authority of the commissioner. The commissioner
shall appoint a director of the division. The division shall administer and operate the benefit
program under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement the provisions
of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Account creation; appropriation. new text end

new text begin The family and medical benefit insurance
account is created in the special revenue fund in the state treasury. Money in this account
is appropriated to the commissioner to pay benefits under and to administer this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Information technology services and equipment. new text end

new text begin The department is exempt
from the provisions of section 16E.016 for the purposes of this chapter.
new text end

Sec. 7.

new text begin [268B.03] ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Applicant. new text end

new text begin An applicant who has a serious health condition, has a
qualifying exigency, is taking safety leave, is providing family care, is bonding, or is
pregnant, and who satisfies the conditions of this section is eligible to receive benefits
subject to the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Wage credits. new text end

new text begin An applicant must have sufficient wage credits from an employer
or employers as defined in section 268B.01, subdivision 10, to establish a benefit account
under section 268.07, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Seven-day qualifying event. new text end

new text begin The period for which an applicant is seeking
benefits must be or have been based on a single event of at least seven calendar days duration
related to pregnancy, family care, a qualifying exigency, safety leave, or the applicant's
serious health condition. The days need not be consecutive. Benefits related to bonding
need not meet the seven-day qualifying event requirement.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible. new text end

new text begin An applicant is not eligible for benefits for any portion of a day in
which the applicant worked for pay.
new text end

new text begin Subd. 5. new text end

new text begin Certification by health care provider. new text end

new text begin Except for bonding benefits, benefits
based on a qualifying exigency, or benefits related to safety leave, the application for benefits
must be certified in writing by a qualified health care professional.
new text end

new text begin Subd. 6. new text end

new text begin Records release. new text end

new text begin An individual whose medical records are necessary to
determine eligibility for benefits under this chapter must sign and date a legally effective
waiver authorizing release to the department of medical and other records to the limited
extent necessary to administer this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Self-employed applicant. new text end

new text begin (a) To be eligible for benefits, a self-employed
individual who has elected coverage under section 268B.11 must fulfill only the requirements,
to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the requirements under
paragraph (b).
new text end

new text begin (b) A self-employed individual must provide documents sufficient to prove the existence
of the individual's business as well as how long that business has been in operation.
new text end

Sec. 8.

new text begin [268B.04] APPLICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Process; deadline. new text end

new text begin Applicants must file a benefit claim pursuant to rules
promulgated by the commissioner within 90 calendar days of the related qualifying event.
If a claim is filed more than 90 calendar days after the start of leave, the covered individual
may receive reduced benefits. All claims shall include a certification supporting a request
for leave under this chapter. The commissioner must establish good cause exemptions from
the certification requirement deadline in the event that a serious health condition of the
applicant prevents the applicant from providing the required certification within the 90
calendar days.
new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin (a) Certification for an applicant taking leave related to the
applicant's serious health condition shall be sufficient if the certification states the date on
which the serious health condition began, the probable duration of the condition, and the
appropriate medical facts within the knowledge of the qualified health care provider as
required by the commissioner.
new text end

new text begin (b) Certification for an applicant taking leave to care for a family member with a serious
health condition shall be sufficient if the certification states the date on which the serious
health condition commenced, the probable duration of the condition, the appropriate medical
facts within the knowledge of the qualified health care provider as required by the
commissioner, a statement that the applicant is needed to care for the family member, and
an estimate of the amount of time that the applicant is needed to care for the family member.
new text end

new text begin (c) Certification for an applicant taking leave related to pregnancy shall be sufficient if
the certification states the expected due date and recovery period based on appropriate
medical facts within the knowledge of the qualified health care provider.
new text end

new text begin (d) Certification for an applicant taking bonding leave because of the birth of the
applicant's child shall be sufficient if the certification includes either the child's birth
certificate or a document issued by the health care provider of the child or the health care
provider of the person who gave birth, stating the child's birth date.
new text end

new text begin (e) Certification for an applicant taking bonding leave because of the placement of a
child with the applicant for adoption or foster care shall be sufficient if the applicant provides
a document issued by the qualified health care provider of the child, an adoption or foster
care agency involved in the placement, or by other individuals as determined by the
commissioner that confirms the placement and the date of placement. To the extent that the
status of an applicant as an adoptive or foster parent changes while an application for benefits
is pending, or while the covered individual is receiving benefits, the applicant must notify
the department of such change in status in writing.
new text end

new text begin (f) Certification for an applicant taking leave because of a qualifying exigency shall be
sufficient if the certification includes:
new text end

new text begin (1) a copy of the family member's active-duty orders;
new text end

new text begin (2) other documentation issued by the United States armed forces; or
new text end

new text begin (3) other documentation permitted by the commissioner.
new text end

new text begin (g) Certification for an applicant taking safety leave is sufficient if the certification
includes a court record or documentation signed by a volunteer or employee of a victim's
services organization, an attorney, a police officer, or an antiviolence counselor. The
commissioner must not require disclosure of details relating to an applicant's or applicant's
family member's domestic abuse, sexual assault, or stalking.
new text end

Sec. 9.

new text begin [268B.05] DETERMINATION OF APPLICATION.
new text end

new text begin Upon the filing of a complete application for benefits, the commissioner shall examine
the application and on the basis of facts found by the commissioner and records maintained
by the department, the applicant shall be determined to be eligible or ineligible within two
weeks. If the application is determined to be valid, the commissioner shall promptly notify
the applicant and any other interested party as to the week when benefits commence, the
weekly benefit amount payable, and the maximum duration of those benefits. If the
application is determined to be invalid, the commissioner shall notify the applicant and any
other interested party of that determination and the reasons for it. If the processing of the
application is delayed for any reason, the commissioner shall notify the applicant, in writing,
within two weeks of the date the application for benefits is filed of the reason for the delay.
Unless the applicant or any other interested party, within 30 calendar days, requests a hearing
before a benefit judge, the determination is final. For good cause shown, the 30-day period
may be extended. At any time within one year from the date of a monetary determination,
the commissioner, upon request of the applicant or on the commissioner's own initiative,
may reconsider the determination if it is found that an error in computation or identity has
occurred in connection with the determination or that additional wages pertinent to the
applicant's status have become available, or if that determination has been made as a result
of a nondisclosure or misrepresentation of a material fact.
new text end

Sec. 10.

new text begin [268B.06] EMPLOYER NOTIFICATION.
new text end

new text begin (a) Upon a determination under section 268B.05 that an applicant is entitled to benefits,
the commissioner must promptly send a notification to each current employer of the applicant,
if any, in accordance with paragraph (b).
new text end

new text begin (b) The notification under paragraph (a) must include, at a minimum:
new text end

new text begin (1) the name of the applicant;
new text end

new text begin (2) that the applicant has applied for and received benefits;
new text end

new text begin (3) the week the benefits commence;
new text end

new text begin (4) the weekly benefit amount payable;
new text end

new text begin (5) the maximum duration of benefits; and
new text end

new text begin (6) descriptions of the employer's right to participate in a hearing under section 268B.05,
and appeal process under section 268B.07.
new text end

Sec. 11.

new text begin [268B.07] APPEAL PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Hearing. new text end

new text begin (a) The commissioner shall designate a chief benefit judge.
new text end

new text begin (b) Upon a timely appeal to a determination having been filed or upon a referral for
direct hearing, the chief benefit judge must set a time and date for a de novo due-process
hearing and send notice to an applicant and an employer, by mail or electronic transmission,
not less than ten calendar days before the date of the hearing.
new text end

new text begin (c) The commissioner may adopt rules on procedures for hearings. The rules need not
conform to common law or statutory rules of evidence and other technical rules of procedure.
new text end

new text begin (d) The chief benefit judge has discretion regarding the method by which the hearing is
conducted.
new text end

new text begin Subd. 2. new text end

new text begin Decision. new text end

new text begin (a) After the conclusion of the hearing, upon the evidence obtained,
the benefit judge must send by mail or electronic transmission to all parties, the decision,
reasons for the decision, and written findings of fact.
new text end

new text begin (b) Decisions of a benefit judge are not precedential.
new text end

new text begin Subd. 3. new text end

new text begin Request for reconsideration. new text end

new text begin Any party, or the commissioner, may, within
30 calendar days of the receipt of the benefit judge's decision, file a request for
reconsideration asking the judge to reconsider that decision.
new text end

new text begin Subd. 4. new text end

new text begin Appeal to court of appeals. new text end

new text begin Any final determination on a request for
reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
new text end

new text begin Subd. 5. new text end

new text begin Benefit judges. new text end

new text begin (a) Only employees of the department who are attorneys licensed
to practice law in Minnesota may serve as a chief benefit judge, senior benefit judges who
are supervisors, or benefit judges.
new text end

new text begin (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may
transfer to another benefit judge any proceedings pending before another benefit judge.
new text end

Sec. 12.

new text begin [268B.08] BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Weekly benefit amount. new text end

new text begin (a) Subject to the maximum weekly benefit
amount, an applicant's weekly benefit is calculated by adding the amounts obtained by
applying the following percentage to an applicant's average weekly wage:
new text end

new text begin (1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage;
plus
new text end

new text begin (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but
not 100 percent; plus
new text end

new text begin (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
new text end

new text begin (b) The state's average weekly wage is the average wage as calculated under section
268.035, subdivision 23, at the time a benefit amount is first determined.
new text end

new text begin (c) Notwithstanding any other provision in this section, weekly benefits must not exceed
the maximum weekly benefit amount applicable at the time benefit payments commence.
new text end

new text begin Subd. 2. new text end

new text begin Timing of payment. new text end

new text begin Except as otherwise provided for in this chapter, benefits
must be paid weekly.
new text end

new text begin Subd. 3. new text end

new text begin Maximum length of benefits. new text end

new text begin (a) Except as provided in paragraph (b), in a
single benefit year, an applicant may receive up to 12 weeks of benefits under this chapter
related to the applicant's serious health condition or pregnancy and up to 12 weeks of benefits
under this chapter for bonding, safety leave, or family care.
new text end

new text begin (b) An applicant may receive up to 26 weeks of benefits in a single benefit year for
family care of a covered service member or for one or more qualifying exigencies.
new text end

new text begin Subd. 4. new text end

new text begin Minimum period for which benefits payable. new text end

new text begin Any claim for benefits must
be based on a single-qualifying event of at least seven calendar days. Benefits may be paid
for a minimum increment of one day. The minimum increment of one day may consist of
multiple, nonconsecutive portions of a day totaling eight hours.
new text end

new text begin Subd. 5. new text end

new text begin Intermittent and partial day leave. new text end

new text begin A leave under this chapter may be taken
intermittently or on a partial day schedule. Leave taken intermittently or on a partial day
schedule shall not result in a reduction in the total amount of leave entitled to an employee
under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Withholding of federal tax. new text end

new text begin If the Internal Revenue Service determines that
benefits are subject to federal income tax, and an applicant elects to have federal income
tax deducted and withheld from the applicant's benefits, the commissioner must deduct and
withhold the amount specified in the Internal Revenue Code in a manner consistent with
state law.
new text end

new text begin Subd. 7. new text end

new text begin Right to leave. new text end

new text begin An applicant has the right to leave from employment for any
day, or portion of a day, for which the applicant is entitled to benefits under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 13.

new text begin [268B.09] EMPLOYMENT PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Retaliation prohibited. new text end

new text begin An employer must not retaliate against an
employee for requesting or obtaining benefits, or for exercising any other right under this
chapter.
new text end

new text begin Subd. 2. new text end

new text begin Interference prohibited. new text end

new text begin An employer must not obstruct or impede an
application for benefits or the exercise of any other right under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Waiver of rights void. new text end

new text begin Any agreement to waive, release, or commute rights
to benefits or any other right under this chapter is void.
new text end

new text begin Subd. 4. new text end

new text begin No assignment of benefits. new text end

new text begin Any assignment, pledge, or encumbrance of benefits
is void. Benefits are exempt from levy, execution, attachment, or any other remedy provided
for the collection of debt. Any waiver of this subdivision is void.
new text end

new text begin Subd. 5. new text end

new text begin Continued insurance. new text end

new text begin During any leave for which an employee is entitled to
benefits under this chapter, 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 such benefits.
new text end

new text begin Subd. 6. new text end

new text begin Reinstatement after leave. new text end

new text begin An employee taking leave for which the employee
is eligible for benefits under this chapter is, upon the expiration of that leave, entitled to
restoration by the employer to the position held by the employee when the leave commenced,
or to a position with equivalent seniority, status, employment benefits, pay, and other terms
and conditions of employment including fringe benefits and service credits that the employee
had been entitled to at the commencement of that leave.
new text end

new text begin Subd. 7. new text end

new text begin Remedies. new text end

new text begin (a) Any employer or covered business entity who violates the
provisions of this chapter is liable to any employee affected for:
new text end

new text begin (1) damages equal to the amount of:
new text end

new text begin (i) any wages, salary, employment benefits, or other compensation denied or lost to such
employee by reason of the violation, or, in a cases in which wages, salary, employment
benefits, or other compensation have not been denied or lost to the employee, any actual
monetary losses sustained by the employee as a direct result of the violation; and
new text end

new text begin (ii) reasonable interest on the amount described in item (i); and
new text end

new text begin (2) such equitable relief as may be appropriate, including employment, reinstatement,
and promotion.
new text end

new text begin (b) An action to recover damages or equitable relief prescribed in paragraph (a) may be
maintained against any employer or covered business entity in any federal or state court of
competent jurisdiction by any one or more employees for and on behalf of:
new text end

new text begin (1) the employees; or
new text end

new text begin (2) the employees and other employees similarly situated.
new text end

new text begin (c) The court in an action under this section must, in addition to any judgment awarded
to the plaintiff or plaintiffs, allow reasonable attorney fees, reasonable expert witness fees,
and other costs of the action to be paid by the defendant.
new text end

Sec. 14.

new text begin [268B.095] BONDING LEAVE.
new text end

new text begin Bonding leave taken under this chapter begins at a time requested by the employee.
Bonding leave must begin within 12 months of the birth, adoption, or placement of a foster
child, except that, in the case where the child must remain in the hospital longer than the
mother, the leave must begin within 12 months after the child leaves the hospital.
new text end

Sec. 15.

new text begin [268B.10] SUBSTITUTION OF A PRIVATE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Application for substitution. new text end

new text begin Employers may apply to the commissioner
for approval to meet their obligations under this chapter through the substitution of a private
plan that provides paid family, paid medical, or paid family and medical benefits. In order
to be approved as meeting an employer's obligations under this chapter, a private plan must
confer all of the same rights, protections, and benefits provided to employees under this
chapter, including but not limited to benefits under section 268B.08 and employment
protections under section 268B.09. An employee covered by a private plan under this section
retains all applicable rights and remedies under section 268B.09.
new text end

new text begin Subd. 2. new text end

new text begin Private plan requirements; medical benefit program. new text end

new text begin The commissioner
must approve an application for private provision of the medical benefit program if the
commissioner determines:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of the
employer plan;
new text end

new text begin (2) eligibility requirements for benefits and leave are no more restrictive than as provided
under this chapter;
new text end

new text begin (3) the weekly benefits payable under the private plan for any week are at least equal to
the weekly benefit amount payable under this chapter, taking into consideration any coverage
with respect to concurrent employment by another employer;
new text end

new text begin (4) the total number of weeks for which benefits are payable under the private plan is
at least equal to the total number of weeks for which benefits would have been payable
under this chapter;
new text end

new text begin (5) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter;
new text end

new text begin (6) wage replacement benefits are stated in the plan separately and distinctly from other
benefits;
new text end

new text begin (7) the private plan will provide benefits and leave for any serious health condition or
pregnancy for which benefits are payable, and leave provided, under this chapter;
new text end

new text begin (8) the private plan will impose no additional condition or restriction on the use of
medical benefits beyond those explicitly authorized by this chapter or regulations
promulgated pursuant to this chapter;
new text end

new text begin (9) the private plan will allow any employee covered under the private plan who is
eligible to receive medical benefits under this chapter to receive medical benefits under the
employer plan; and
new text end

new text begin (10) coverage will be continued under the private plan while an employee remains
employed by the employer.
new text end

new text begin Subd. 3. new text end

new text begin Private plan requirements; family benefit program. new text end

new text begin The commissioner must
approve an application for private provision of the family benefit program if the
commissioner determines:
new text end

new text begin (1) all of the employees of the employer are to be covered under the provisions of the
employer plan;
new text end

new text begin (2) eligibility requirements for benefits and leave are no more restrictive than as provided
under this chapter;
new text end

new text begin (3) the weekly benefits payable under the private plan for any week are at least equal to
the weekly benefit amount payable under this chapter, taking into consideration any coverage
with respect to concurrent employment by another employer;
new text end

new text begin (4) the total number of weeks for which benefits are payable under the private plan is
at least equal to the total number of weeks for which benefits would have been payable
under this chapter;
new text end

new text begin (5) no greater amount is required to be paid by employees toward the cost of benefits
under the employer plan than by this chapter;
new text end

new text begin (6) wage replacement benefits are stated in the plan separately and distinctly from other
benefits;
new text end

new text begin (7) the private plan will provide benefits and leave for any care for a family member
with a serious health condition, bonding with a child, qualifying exigency, or safety leave
event for which benefits are payable, and leave provided, under this chapter;
new text end

new text begin (8) the private plan will impose no additional condition or restriction on the use of family
benefits beyond those explicitly authorized by this chapter or regulations promulgated
pursuant to this chapter;
new text end

new text begin (9) the private plan will allow any employee covered under the private plan who is
eligible to receive medical benefits under this chapter to receive medical benefits under the
employer plan; and
new text end

new text begin (10) coverage will be continued under the private plan while an employee remains
employed by the employer.
new text end

new text begin Subd. 4. new text end

new text begin Use of private insurance products. new text end

new text begin Nothing in this section prohibits an
employer from meeting the requirements of a private plan through a private insurance
product. If the employer plan involves a private insurance product, that insurance product
must conform to any applicable law or rule.
new text end

new text begin Subd. 5. new text end

new text begin Private plan approval and oversight fee. new text end

new text begin An employer with an approved
private plan will not be required to pay premiums established under section 268B.12. An
employer with an approved private plan will be responsible for an annual private plan
approval and oversight fee equal to five percent of the total premium that would have been
paid under section 268B.12 if the employer had not gotten an approved private plan. The
commissioner will review and report on the adequacy of this fee to cover private plan
administrative costs annually beginning in 2020 as part of the annual report established in
section 268B.21.
new text end

new text begin Subd. 6. new text end

new text begin Plan duration. new text end

new text begin A private plan under this section must be in effect for a period
of at least one year and, thereafter, continuously unless the commissioner finds that the
employer has given notice of withdrawal from the plan in a manner specified by the
commissioner in this section or rule. The plan may be withdrawn by the employer within
30 days of the effective date of any law increasing the benefit amounts or within 30 days
of the date of any change in the rate of premiums. If the plan is not withdrawn, it must be
amended to conform to provide the increased benefit amount or change in the rate of the
employee's premium on the date of the increase or change.
new text end

new text begin Subd. 7. new text end

new text begin Appeals. new text end

new text begin (a) An employer may appeal any adverse decision by the department
regarding that employer's private plan in the manner specified under section 268B.07.
new text end

new text begin (b) An employee working for an employer with an approved private plan may appeal
an employer's denial of leave or benefits in the manner specified under section 268B.07.
new text end

new text begin Subd. 8. new text end

new text begin Employees no longer covered. new text end

new text begin (a) An employee is no longer covered by an
approved private plan if a leave under this chapter occurs after the employment relationship
with the private plan employer ends, or if the commissioner revokes the approval of the
private plan.
new text end

new text begin (b) An employee no longer covered by an approved private plan is, if otherwise eligible,
immediately entitled to benefits under this chapter to the same extent as though there had
been no approval of the private plan.
new text end

new text begin Subd. 9. new text end

new text begin Posting of notice regarding private plan. new text end

new text begin An employer with a private plan
must provide a notice prepared by or approved by the commissioner regarding the private
plan consistent with the provisions of section 268B.22.
new text end

new text begin Subd. 10. new text end

new text begin Amendment. new text end

new text begin (a) The commissioner must approve any amendment to a private
plan adjusting the provisions thereof, if the commissioner determines:
new text end

new text begin (1) that the plan, as amended, will conform to the standards set forth in this chapter; and
new text end

new text begin (2) that notice of the amendment has been delivered to all affected employees at least
ten days before the submission of the amendment.
new text end

new text begin (b) Any amendments approved under this subdivision are effective on the date of the
commissioner's approval, unless the commissioner and the employer agree on a later date.
new text end

new text begin Subd. 11. new text end

new text begin Successor employer. new text end

new text begin A private plan in effect at the time a successor acquires
the employer organization, trade, or business, or substantially all the assets thereof, or a
distinct and severable portion of the organization, trade, or business, and continues its
operation without substantial reduction of personnel resulting from the acquisition, must
continue the approved private plan and must not withdraw the plan without a specific request
for withdrawal in a manner and at a time specified by the commissioner. A successor may
terminate a private plan with notice to the commissioner and within 90 days from the date
of the acquisition.
new text end

new text begin Subd. 12. new text end

new text begin Revocation of approval by commissioner. new text end

new text begin (a) The commissioner may
terminate any private plan if the commissioner determines the employer:
new text end

new text begin (1) failed to pay benefits;
new text end

new text begin (2) failed to pay benefits in a timely manner, consistent with the requirements of this
chapter;
new text end

new text begin (3) failed to submit reports as required by this chapter or rule adopted under this chapter;
or
new text end

new text begin (4) otherwise failed to comply with this chapter or rule adopted under this chapter.
new text end

new text begin (b) The commissioner must give notice of the intention to terminate a plan to the employer
at least ten days before taking any final action. The notice must state the effective date and
the reason for the termination.
new text end

new text begin (c) The employer may, within ten days from mailing or personal service of the notice,
file an appeal in the time, manner, method, and procedure provided in section 268B.07
new text end

new text begin (d) The payment of benefits must not be delayed during an employer's appeal of the
revocation of approval of a private plan.
new text end

new text begin (e) If the commissioner revokes approval of an employer's private plan, that employer
is ineligible to apply for approval of another private plan for a period of three years, beginning
on the date of revocation.
new text end

new text begin Subd. 13. new text end

new text begin Employer penalties. new text end

new text begin (a) The commissioner of labor and industry may assess
the following monetary penalties against an employer with an approved private plan found
to have violated this chapter:
new text end

new text begin (1) $1,000 for the first violation; and
new text end

new text begin (2) $2,000 for the second, and each successive violation.
new text end

new text begin (b) The commissioner of labor and industry must waive collection of any penalty if the
employer corrects the violation within 30 days of receiving a notice of the violation and the
notice is for a first violation.
new text end

new text begin (c) The commissioner of labor and industry may waive collection of any penalty if the
commissioner determines the violation to be an inadvertent error by the employer.
new text end

new text begin (d) Monetary penalties collected under this section shall be deposited in the account.
new text end

new text begin (e) Assessment of penalties under this subdivision may be appealed as provided in section
268B.07.
new text end

new text begin Subd. 14. new text end

new text begin Reports, information, and records. new text end

new text begin Employers with an approved private
plan must maintain all reports, information, and records as relating to the private plan and
claims for a period of six years from creation and provide to the commissioner upon request.
new text end

new text begin Subd. 15. new text end

new text begin Audit and investigation. new text end

new text begin The commissioner may investigate and audit plans
approved under this section both before and after the plans are approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 16.

new text begin [268B.11] SELF-EMPLOYED ELECTION OF COVERAGE.
new text end

new text begin (a) A self-employed individual may file with the commissioner, by electronic transmission
in a format prescribed by the commissioner, an election that the individual is covered as an
employee for not less than two calendar years. Upon the approval of the commissioner, sent
by United States mail or electronic transmission, the individual is covered as an employee
under this chapter beginning the calendar quarter after the date of approval or beginning in
a later calendar quarter if requested by the self-employed individual. The individual ceases
to be covered as of the first day of January of any calendar year only if, at least 30 calendar
days before the first day of January, the individual has filed with the commissioner, by
electronic transmission in a format prescribed by the commissioner, a notice to that effect.
new text end

new text begin (b) The commissioner must terminate any election agreement under this section upon
30 calendar days' notice sent by United States mail or electronic transmission if the individual
is delinquent on any premiums due under this chapter.
new text end

new text begin (c) The individual electing under this section must pay both the employer and employee
premiums under section 268B.12.
new text end

new text begin (d) The individual must comply with the requirements imposed on employers and
employees under this chapter except to the extent the commissioner determines requiring
compliance is unreasonable.
new text end

Sec. 17.

new text begin [268B.12] PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Employer. new text end

new text begin (a) Each taxpaying employer under the state's unemployment
insurance program must pay a premium on the wages paid to employees in covered
employment for each calendar year. The premium must be paid on all wages up to the
maximum specified by this section.
new text end

new text begin (b) Each reimbursing employer under the state's unemployment insurance law must pay
a premium on the wages paid to employees in covered employment in the same amount and
manner as provided by paragraph (a).
new text end

new text begin (c) For each calendar year, each covered business entity must pay a premium on payments
to self-employed individuals, required to be reported on Internal Revenue Service Form
1099-MISC, for work performed in the state.
new text end

new text begin Subd. 2. new text end

new text begin Employee charge back. new text end

new text begin Notwithstanding section 181.06, employers and
covered business entities may deduct up to 50 percent of annual premiums paid under this
section from employee wages. Such deductions for any given employee must be in equal
proportion to the premiums paid based on the wages of that employee.
new text end

new text begin Subd. 3. new text end

new text begin Wages and payments subject to premium. new text end

new text begin (a) The maximum wages subject
to premium in a calendar year is equal to the maximum earnings in that year subject to the
FICA Old-Age, Survivors, and Disability Insurance tax.
new text end

new text begin (b) The maximum payment amount subject to premium in a calendar year, under
subdivision 1, paragraph (c), is equal to the maximum earnings in that year subject to the
FICA Old-Age, Survivors, and Disability Insurance tax.
new text end

new text begin Subd. 4. new text end

new text begin Annual premium rates. new text end

new text begin The employer premium rates for the calendar year
beginning January 1, 2021, shall be as follows:
new text end

new text begin (1) for employers participating in both family and medical benefit programs, ... percent;
new text end

new text begin (2) for an employer participating in only the medical benefit program and with an
approved private plan for the family benefit program, ... percent; and
new text end

new text begin (3) for an employer participating in only the family benefit program and with an approved
private plan for the medical benefit program, ... percent.
new text end

new text begin Subd. 5. new text end

new text begin Premium rate adjustments. new text end

new text begin (a) Each calendar year following the calendar
year beginning January 1, 2024, except calendar year 2025, the commissioner must adjust
the annual premium rates using the formula in paragraph (b).
new text end

new text begin (b) To calculate the employer rates for a calendar year, the commissioner must:
new text end

new text begin (1) multiply 1.45 times the amount disbursed from the account for the 52-week period
ending September 30 of the prior year;
new text end

new text begin (2) subtract the amount in the account on that September 30 from the resulting figure;
new text end

new text begin (3) divide the resulting figure by twice the total wages in covered employment of
employees of employers that have not opted out of both the family and medical benefit
programs. For employees of employers that have opted out of one of the two programs,
count only the proportion of wages in covered employment associated with the program of
which the employer did not opt out; and
new text end

new text begin (4) round the resulting figure down to the nearest one-hundredth of one percent.
new text end

new text begin (c) For calendar year 2025, the calculation shall be as provided in paragraph (b), except
that the disbursements in paragraph (b), clause (1), shall be those for the 39 weeks ending
September 30, and projected disbursements for the next 13 weeks.
new text end

new text begin (d) The commissioner must apportion the premium rate between the family and medical
benefit programs based on the relative proportion of expenditures for each program during
the preceding year.
new text end

new text begin Subd. 6. new text end

new text begin Premium rate limits. new text end

new text begin The aggregate premium rate of employers and employees
under this chapter must not be less than ... percent or more than ... percent annually.
new text end

new text begin Subd. 7. new text end

new text begin Deposit of premiums. new text end

new text begin All premiums collected under this section must be
deposited into the account.
new text end

new text begin Subd. 8. new text end

new text begin Nonpayment of premiums by employer. new text end

new text begin The failure of an employer to pay
premiums does not impact the right of an employee to benefits, or any other right, under
this chapter.
new text end

Sec. 18.

new text begin [268B.13] COLLECTION OF PREMIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Amount computed presumed correct. new text end

new text begin Any amount due from an
employer, as computed by the commissioner, is presumed to be correctly determined and
assessed, and the burden is upon the employer to show any error. A statement by the
commissioner of the amount due is admissible in evidence in any court or administrative
proceeding and is prima facie evidence of the facts in the statement.
new text end

new text begin Subd. 2. new text end

new text begin Priority of payments. new text end

new text begin (a) Any payment received from an employer must be
applied in the following order:
new text end

new text begin (1) premiums due under this chapter; then
new text end

new text begin (2) interest on past due premiums; then
new text end

new text begin (3) penalties, late fees, administrative service fees, and costs.
new text end

new text begin (b) Paragraph (a) is the priority used for all payments received from an employer,
regardless of how the employer may designate the payment to be applied, except when:
new text end

new text begin (1) there is an outstanding lien and the employer designates that the payment made
should be applied to satisfy the lien;
new text end

new text begin (2) a court or administrative order directs that the payment be applied to a specific
obligation;
new text end

new text begin (3) a preexisting payment plan provides for the application of payment; or
new text end

new text begin (4) the commissioner agrees to apply the payment to a different priority.
new text end

new text begin Subd. 3. new text end

new text begin Costs. new text end

new text begin (a) Any employer that fails to pay any amount when due under this
chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
to any public or private collection agency, or litigation costs, including attorney fees, incurred
in the collection of the amounts due.
new text end

new text begin (b) If any tendered payment of any amount due is not honored when presented to a
financial institution for payment, any costs assessed to the department by the financial
institution and a fee of $25 must be assessed to the person.
new text end

new text begin (c) Costs and fees collected under this subdivision are credited to the account.
new text end

new text begin Subd. 4. new text end

new text begin Interest on amounts past due. new text end

new text begin If any amounts due from an employer under
this chapter, except late fees, are not received on the date due, the unpaid balance bears
interest at the rate of one percent per month or any part of a month. Interest collected under
this subdivision is payable to the account.
new text end

new text begin Subd. 5. new text end

new text begin Interest on judgments. new text end

new text begin Regardless of section 549.09, if judgment is entered
upon any past due amounts from an employer under this chapter, the unpaid judgment bears
interest at the rate specified in subdivision 4 until the date of payment.
new text end

new text begin Subd. 6. new text end

new text begin Credit adjustments; refunds. new text end

new text begin (a) If an employer makes an application for a
credit adjustment of any amount paid under this chapter within four years of the date that
the payment was due, in a manner and format prescribed by the commissioner, and the
commissioner determines that the payment or any portion thereof was erroneous, the
commissioner must make an adjustment and issue a credit without interest. If a credit cannot
be used, the commissioner must refund, without interest, the amount erroneously paid. The
commissioner, on the commissioner's own motion, may make a credit adjustment or refund
under this subdivision.
new text end

new text begin (b) Any refund returned to the commissioner is considered unclaimed property under
chapter 345.
new text end

new text begin (c) If a credit adjustment or refund is denied in whole or in part, a determination of denial
must be sent to the employer by United States mail or electronic transmission. The
determination of denial is final unless an employer files an appeal within 20 calendar days
after receipt of the determination.
new text end

new text begin Subd. 7. new text end

new text begin Priorities under legal dissolutions or distributions. new text end

new text begin In the event of any
distribution of an employer's assets according to an order of any court, including any
receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
proceeding, premiums then or thereafter due must be paid in full before all other claims
except claims for wages of not more than $1,000 per former employee that are earned within
six months of the commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy under federal law, premiums then or thereafter due are entitled
to the priority provided in that law for taxes due.
new text end

Sec. 19.

new text begin [268B.14] ADMINISTRATIVE COSTS.
new text end

new text begin For the calendar year beginning January 1, 2023, and each calendar year thereafter, the
commissioner may spend up to seven percent of projected benefit payments for that calendar
year for the administration of this chapter.
new text end

Sec. 20.

new text begin [268B.15] PUBLIC OUTREACH.
new text end

new text begin Beginning in fiscal year 2021, the commissioner must use at least 0.5 percent of revenue
collected under this chapter for the purpose of outreach, education and technical assistance
for employees and employers. At least one-half of the amount spent under this section must
be used for grants to community-based groups.
new text end

Sec. 21.

new text begin [268B.16] APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT
OF FACTS; PENALTY.
new text end

new text begin (a) Any applicant who knowingly makes a false statement or representation, knowingly
fails to disclose a material fact, or makes a false statement or representation without a
good-faith belief as to the correctness of the statement or representation in order to obtain
or in an attempt to obtain benefits may be assessed, in addition to any other penalties, an
administrative penalty of ineligibility of benefits for 13 to 104 weeks.
new text end

new text begin (b) A determination of ineligibility setting out the weeks the applicant is ineligible must
be sent to the applicant by United States mail or electronic transmission. The determination
is final unless an appeal is filed within 30 calendar days after receipt of the determination.
new text end

Sec. 22.

new text begin [268B.17] EMPLOYER MISCONDUCT; PENALTY.
new text end

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

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

new text begin (1) made a false statement or representation knowing it to be false;
new text end

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

new text begin (3) knowingly failed to disclose a material fact.
new text end

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

new text begin (1) the amount of any overpaid benefits to an applicant;
new text end

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

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

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

new text begin (e) The determination of penalty is final unless the employer files an appeal within 30
calendar days after the sending of the determination of penalty to the employer by United
States mail or electronic transmission.
new text end

Sec. 23.

new text begin [268B.18] RECORDS; AUDITS.
new text end

new text begin (a) Each employer must keep true and accurate records on individuals performing services
for the employer, containing the information the commissioner may require under this
chapter. The records must be kept for a period of not less than four years in addition to the
current calendar year.
new text end

new text begin (b) For the purpose of administering this chapter, the commissioner has the power to
investigate, audit, examine, or cause to be supplied or copied, any books, correspondence,
papers, records, or memoranda that are the property of, or in the possession of, an employer
or any other person at any reasonable time and as often as may be necessary.
new text end

new text begin (c) An employer or other person that refuses to allow an audit of its records by the
department or that fails to make all necessary records available for audit in the state upon
request of the commissioner may be assessed an administrative penalty of $500. The penalty
collected is credited to the account.
new text end

Sec. 24.

new text begin [268B.19] SUBPOENAS; OATHS.
new text end

new text begin (a) The commissioner or benefit judge has authority to administer oaths and affirmations,
take depositions, certify to official acts, and issue subpoenas to compel the attendance of
individuals and the production of documents and other personal property necessary in
connection with the administration of this chapter.
new text end

new text begin (b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, must be paid witness fees the same as witness
fees in civil actions in district court. The fees need not be paid in advance.
new text end

new text begin (c) The subpoena is enforceable through the district court in Ramsey County.
new text end

Sec. 25.

new text begin [268B.20] MEDIATION AND CONCILIATION.
new text end

new text begin The department must offer mediation and conciliation services to employers and
applicants to resolve disputes concerning benefits under this chapter. The commissioner
shall notify parties of the availability of those services and may by rule extend appeal
deadlines to accommodate conciliation and mediation.
new text end

Sec. 26.

new text begin [268B.21] ANNUAL REPORTS.
new text end

new text begin (a) Annually, beginning on or before December 1, 2020, the commissioner must report
to the Department of Management and Budget and the house of representatives and senate
committee chairs with jurisdiction over this chapter on program administrative expenditures
and revenue collection for the prior fiscal year, including but not limited to:
new text end

new text begin (1) total revenue raised through premium collection;
new text end

new text begin (2) the number of self-employed individuals electing coverage under section 268B.11
and amount of associated revenue;
new text end

new text begin (3) the number of covered business entities paying premiums under this chapter and
associated revenue;
new text end

new text begin (4) administrative expenditures including transfers to other state agencies expended in
the administration of the chapter;
new text end

new text begin (5) summary of contracted services expended in the administration of this chapter;
new text end

new text begin (6) grant amounts and recipients under section 268B.15;
new text end

new text begin (7) an accounting of required outreach expenditures;
new text end

new text begin (8) summary of private plan approvals including the number of employers and employees
covered under private plans; and
new text end

new text begin (9) adequacy and use of the private plan approval and oversight fee.
new text end

new text begin (b) Annually, beginning on or before December 1, 2021, the commissioner must publish
a publicly available report providing the following information for the previous fiscal year:
new text end

new text begin (1) total eligible claims;
new text end

new text begin (2) the number and percentage of claims attributable to each category of benefit;
new text end

new text begin (3) claimant demographics by age, gender, average weekly wage, occupation, and the
type of leave taken;
new text end

new text begin (4) the percentage of claims denied and the reasons therefor, including, but not limited
to insufficient information and ineligibility and the reason therefor;
new text end

new text begin (5) average weekly benefit amount paid for all claims and by category of benefit;
new text end

new text begin (6) changes in the benefits paid compared to previous fiscal years;
new text end

new text begin (7) processing times for initial claims processing, initial determinations, and final
decisions;
new text end

new text begin (8) average duration for cases completed; and
new text end

new text begin (9) the number of cases remaining open at the close of such year.
new text end

Sec. 27.

new text begin [268B.22] NOTICE REQUIREMENTS.
new text end

new text begin (a) Each employer and covered business entity must post in a conspicuous place on each
of its premises a workplace notice prepared or approved by the commissioner providing
notice of benefits available under this chapter. The required workplace notice must be in
English and each language other than English which is the primary language of five or more
employees or self-employed individuals of that workplace, if such notice is available from
the department.
new text end

new text begin (b) Each employer must issue to each employee not more than 30 days from the beginning
date of the employee's employment, or 30 days before premium collection begins, which
ever is later, the following written information provided or approved by the department in
the primary language of the employee:
new text end

new text begin (1) an explanation of the availability of family and medical leave benefits provided under
this chapter, including rights to reinstatement and continuation of health insurance;
new text end

new text begin (2) the amount of premium deductions made by the employer under this chapter;
new text end

new text begin (3) the employer's premium amount and obligations under this chapter;
new text end

new text begin (4) the name and mailing address of the employer;
new text end

new text begin (5) the identification number assigned to the employer by the department;
new text end

new text begin (6) instructions on how to file a claim for family and medical leave benefits;
new text end

new text begin (7) the mailing address, e-mail address, and telephone number of the department; and
new text end

new text begin (8) any other information required by the department.
new text end

new text begin Delivery is made when an employee provides written acknowledgment of receipt of the
information, or signs a statement indicating the employee's refusal to sign such
acknowledgment.
new text end

new text begin (c) Each covered business entity shall provide to each self-employed individual with
whom it contracts, at the time such contract is made or, for existing contracts, within 30
days of the effective date of this section, the following written information provided or
approved by the department in the self-employed individual's primary language:
new text end

new text begin (1) an explanation of the availability of family and medical leave benefits provided under
this chapter and the procedures established by the department for self-employed individuals
to become covered individuals;
new text end

new text begin (2) the self-employed individual's contribution amount and obligations under this chapter;
new text end

new text begin (3) the covered business entity's contribution amount and obligations under this chapter;
new text end

new text begin (4) the name, mailing address, and e-mail address of the covered business entity;
new text end

new text begin (5) the identification number assigned to the covered business entity by the department;
new text end

new text begin (6) instructions on how to file a claim for family and medical leave benefits;
new text end

new text begin (7) the address and telephone number of the department; and
new text end

new text begin (8) any other information required by the department.
new text end

new text begin Delivery is made when a self-employed individual provides written acknowledgment of
receipt of the information, or signs a statement indicating the self-employed individual's
refusal to sign such acknowledgment.
new text end

new text begin (d) An employer or covered business entity that fails to comply with this subsection may
be issued, for a first violation, a civil penalty of $50 per employee and per self-employed
individual with whom it has contracted, and for each subsequent violation, a civil penalty
of $300 per employee or self-employed individual with whom it has contracted. The employer
or covered business entity shall have the burden of demonstrating compliance with this
section.
new text end

new text begin (e) An employee must give at least 30 days notice to the employer of the anticipated
starting date of any leave under this chapter, the anticipated length of the leave, and the
expected date of return or shall provide notice as soon as practicable if the delay is for
reasons beyond the employee's control. If an employer fails to provide notice of this chapter
as required under paragraph (b), the employee's notice requirement shall be waived.
new text end

Sec. 28.

new text begin [268B.23] RELATIONSHIP TO OTHER LEAVE; CONSTRUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Concurrent leave. new text end

new text begin An employer may require leave taken under this
chapter to run concurrently with leave taken for the same purpose under section 181.941
or the Family and Medical Leave Act, United States Code, title 29, sections 2601 to 2654,
as amended.
new text end

new text begin Subd. 2. new text end

new text begin Construction. new text end

new text begin Nothing in this chapter shall be construed to:
new text end

new text begin (1) allow an employer to compel an employee to exhaust accumulated sick, vacation,
or personal time before or while taking leave under this chapter; or
new text end

new text begin (2) prohibit an employer from providing additional benefits, including, but not limited
to, covering the portion of earnings not provided under this chapter during periods of leave
covered under this chapter.
new text end

Sec. 29.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Benefits under chapter 268B. new text end

new text begin The amount received in benefits under chapter
268B is a subtraction.
new text end

Sec. 30. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Benefits under Minnesota Statutes, chapter 268B, shall not be applied for nor paid
until January 1, 2022, and thereafter. This article is effective August 1, 2020, unless
specifically provided otherwise.
new text end

new text begin (b) Sections 17 and 18 are effective on January 1, 2021.
new text end

ARTICLE 2

APPROPRIATIONS

Section 1. new text begin FAMILY AND MEDICAL BENEFIT PROGRAM APPROPRIATIONS.
new text end

new text begin $....... in fiscal year 2021 is appropriated from the general fund to the commissioner of
employment and economic development for the purposes of Minnesota Statutes, chapter
268B. This appropriation does not cancel and unexpended amounts may be used in fiscal
year 2022. The base amount for fiscal year 2022 is $0. The base amount for fiscal year 2023
is $....... The base amounts for 2024 and beyond are $0.
new text end

new text begin $....... in fiscal year 2021 is appropriated from the general fund to the commissioner of
labor and industry for the purposes of enforcement of Minnesota Statutes, chapter 268B.
This appropriation does not cancel and unexpended amounts may be used in fiscal year
2022. The base amount for fiscal year 2022 is $0. The base amount for fiscal year 2023 is
$....... The base amounts for 2024 and beyond are $0.
new text end

new text begin $........ in fiscal year 2020 is appropriated from the general fund to the commissioner of
employment and economic development for the purpose of outreach, education, and technical
assistance for employees and employers.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
labor and industry for the purpose of outreach, education, and technical assistance for
employers and employees.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
employment and economic development for grants to community-based groups providing
outreach, education, and technical assistance for employees and employers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

ARTICLE 3

FAMILY AND MEDICAL LEAVE BENEFIT AS EARNINGS

Section 1.

Minnesota Statutes 2018, section 256J.561, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Parents receiving family and medical leave benefits. new text end

new text begin A parent who meets
the criteria under subdivision 2 and who receives benefits under chapter 268B is not required
to participate in employment services.
new text end

Sec. 2.

Minnesota Statutes 2018, section 256J.95, subdivision 3, is amended to read:

Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories of
family units listed in clauses (1) to (8), all family units who apply for cash benefits and who
meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must
participate in the diversionary work program. Family units or individuals that are not eligible
for the diversionary work program include:

(1) child only cases;

(2) single-parent family units that include a child under 12 months of age. A parent is
eligible for this exception once in a parent's lifetime;

(3) family units with a minor parent without a high school diploma or its equivalent;

(4) family units with an 18- or 19-year-old caregiver without a high school diploma or
its equivalent who chooses to have an employment plan with an education option;

(5) family units with a caregiver who received DWP benefits within the 12 months prior
to the month the family applied for DWP, except as provided in paragraph (c);

(6) family units with a caregiver who received MFIP within the 12 months prior to the
month the family applied for DWP;

(7) family units with a caregiver who received 60 or more months of TANF assistance;
deleted text begin and
deleted text end

(8) family units with a caregiver who is disqualified from the work participation cash
benefit program, DWP, or MFIP due to fraud deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) single-parent family units where a parent is receiving family and medical leave
benefits under chapter 268B.
new text end

(b) A two-parent family must participate in DWP unless both caregivers meet the criteria
for an exception under paragraph (a), clauses (1) through (5), or the family unit includes a
parent who meets the criteria in paragraph (a), clause (6), (7), or (8).

(c) Once DWP eligibility is determined, the four months run consecutively. If a participant
leaves the program for any reason and reapplies during the four-month period, the county
must redetermine eligibility for DWP.

Sec. 3.

Minnesota Statutes 2018, section 256J.95, subdivision 11, is amended to read:

Subd. 11.

Universal participation required.

(a) All DWP caregivers, except caregivers
who meet the criteria in paragraph (d), are required to participate in DWP employment
services. Except as specified in paragraphs (b) and (c), employment plans under DWP must,
at a minimum, meet the requirements in section 256J.55, subdivision 1.

(b) A caregiver who is a member of a two-parent family that is required to participate
in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed
to develop an employment plan under section 256J.521, subdivision 2, that may contain
alternate activities and reduced hours.

(c) A participant who is a victim of family violence shall be allowed to develop an
employment plan under section 256J.521, subdivision 3. A claim of family violence must
be documented by the applicant or participant by providing a sworn statement which is
supported by collateral documentation in section 256J.545, paragraph (b).

(d) One parent in a two-parent family unit deleted text begin that has a natural born child under 12 months
of age deleted text end is not required to have an employment plan deleted text begin until the child reaches 12 months of age
unless the family unit has already used the exclusion under section 256J.561, subdivision
3, or the previously allowed child under age one exemption under section 256J.56, paragraph
(a), clause (5). deleted text end new text begin if that parent:
new text end

new text begin (1) receives family and medical leave benefits under chapter 268B; or
new text end

new text begin (2) has a natural born child under 12 months of age until the child reaches 12 months
of age unless the family unit has already used the exclusion under section 256J.561,
subdivision 3, or the previously allowed child under age one exemption under section
256J.56, paragraph (a), clause (5).
new text end

(e) The provision in paragraph (d) ends the first full month after the child reaches 12
months of age. This provision is allowable only once in a caregiver's lifetime. In a two-parent
household, only one parent shall be allowed to use this category.

(f) The participant and job counselor must meet in the month after the month the child
reaches 12 months of age to revise the participant's employment plan. The employment plan
for a family unit that has a child under 12 months of age that has already used the exclusion
in section 256J.561 must be tailored to recognize the caregiving needs of the parent.

Sec. 4.

Minnesota Statutes 2018, section 256P.01, subdivision 3, is amended to read:

Subd. 3.

Earned income.

"Earned income" means cash or in-kind income earned through
the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from employment
activities, net profit from self-employment activities, payments made by an employer for
regularly accrued vacation or sick leave, severance pay based on accrued leave time, new text begin benefits
paid under chapter 268B, new text end payments from training programs at a rate at or greater than the
state's minimum wage, royalties, honoraria, or other profit from activity that results from
the client's work, service, effort, or labor. The income must be in return for, or as a result
of, legal activity.