1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/22/2023 10:44am
Engrossments | ||
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Introduction | Posted on 01/27/2023 | |
1st Engrossment | Posted on 02/20/2023 |
A bill for an act
relating to employment; prohibiting payment of certain sexual harassment or abuse
settlements as severance; allowing a state income tax subtraction for certain
damages received; amending Minnesota Statutes 2022, section 290.0132, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapter 181.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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In a sexual harassment or abuse settlement between an employer and an employee, when
there is a financial settlement provided, the financial settlement cannot be provided as wages
or severance pay to the employee regardless of whether the settlement includes a
nondisclosure agreement.
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This section is effective the day following final enactment.
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Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
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The amount of qualifying damages
received is a subtraction. For purposes of this subdivision, "qualifying damages" means:
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(1) damages received under a sexual harassment or abuse claim that are not excluded
from gross income under section 104(a)(2) of the Internal Revenue Code because the injury
or sickness for which the damages are paid are not physical; or
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(2) severance pay received under a financial settlement of a sexual harassment or abuse
claim that does not include a nondisclosure agreement.
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This section is effective for taxable years beginning after December
31, 2022.
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