SF 588

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; prohibiting employers from
misrepresenting the nature of employment
relationships; providing a civil remedy; proposing
coding for new law in Minnesota Statutes, chapter 181.

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

Section 1.

new text begin [181.722] MISREPRESENTATION OF EMPLOYMENT
RELATIONSHIP PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin No employer shall
misrepresent the nature of its employment relationship with its
employees to any federal, state, or local government unit, to
other employers or to its employees. An employer misrepresents
the nature of its employment relationship with its employees if
it makes any statement regarding the nature of the relationship
that the employer knows or has reason to know is untrue and if
it fails to report individuals as employees when legally
required to do so.
new text end

new text begin Subd. 2. new text end

new text begin Agreements to misclassify prohibited. new text end

new text begin No
employer shall require or request any employee to enter into any
agreement, or sign any document, that results in
misclassification of the employee as an independent contractor
or otherwise does not accurately reflect the employment
relationship with the employer.
new text end

new text begin Subd. 3. new text end

new text begin Determination of employment relationship. new text end

new text begin For
purposes of this section, the nature of an employment
relationship is determined using the same tests and in the same
manner as employee status is determined under the applicable
workers' compensation and unemployment insurance program laws
and rules.
new text end

new text begin Subd. 4. new text end

new text begin Reporting of violations. new text end

new text begin Any court finding that
a violation of this section has occurred shall transmit a copy
of the documentation of the finding to the commissioner of labor
and industry. The commissioner of labor and industry shall
report the finding to relevant state and federal agencies,
including at least the commissioner of commerce, the
commissioner of employment and economic development, the
commissioner of revenue, the federal Internal Revenue Service,
and the United States Department of Labor.
new text end

new text begin Subd. 5. new text end

new text begin Civil remedy. new text end

new text begin An individual not a contractor
injured by a violation of this section may bring an action for
damages against the violator. The court may award attorney
fees, costs, and disbursements to a party recovering under this
section. If the individual injured is an employee of the
violator of this section, the employee's representative, as
defined in section 179.01, subdivision 5, may bring an action
for damages against the violator on behalf of the employee.
new text end

Sec. 2. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall insert a first grade headnote
prior to Minnesota Statutes, section 181.722, that reads
"MISREPRESENTATION OF EMPLOYMENT RELATIONSHIPS."
new text end