HF 2240

as introduced - 94th Legislature (2025 - 2026) Posted on 04/10/2025 04:23pm

A bill for an act
relating to labor; allowing union members to allocate union dues to the local, state,
or national organization of their choice; amending Minnesota Statutes 2024, sections
179A.06, subdivision 6; 181.06, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 179A.06, subdivision 6, is amended to read:

Subd. 6.

Payroll deduction, authorization, and remittance.

(a) A public employee
may request payroll deduction for the exclusive representative that represents the employee's
position and its associated political fund under section 10A.12 new text begin , or to allocate all or a portion
of the public employee's union dues or membership fees to the local, state, or national
organization of the public employee's choice new text end . new text begin The exclusive representative must inform
public employees of the option to allocate their union dues or membership fees to the local,
state, or national organization of the public employee's choice. Any dues deduction
authorization must clearly provide public employees this choice. new text end If no exclusive
representative represents an employee's position, the public employee may request payroll
deduction for the organization of the employee's choice. A public employer must provide
payroll deduction according to any public employee's request under this paragraph.

(b) A public employer must rely on a certification from an exclusive representative
requesting remittance of a deduction that the organization has and will maintain an
authorization signed, either by hand or electronically according to section 325L.02, paragraph
(h), by the public employee from whose salary or wages the deduction is to be made. An
exclusive representative making a certification is not required to provide the public employer
a copy of the authorization unless a dispute arises about the authorization's existence or
terms.

(c) A payroll deduction authorization is effective until the exclusive representative
notifies the employer that a public employee has changed or canceled the employee's
authorization in writing in accordance with the terms of the original authorization. When
determining whether deductions have been properly changed or canceled, a public employer
must rely on information from the exclusive representative receiving remittance of the
deduction.

(d) Deduction authorization under this section is:

(1) independent from the public employee's membership status in the organization to
which payment is remitted; and

(2) effective regardless of whether a collective bargaining agreement authorizes the
deduction.

(e) An employer must:

(1) begin deductions within 30 days after an exclusive representative submits a
certification under paragraph (b); and

(2) remit the deductions to the exclusive representative new text begin or to the organization of the
public employee's choice new text end within 30 days of the deduction.

(f) An exclusive representative must indemnify a public employer:

(1) for any successful employee claim for unauthorized employer deductions made by
relying on an exclusive representative's certification under paragraph (b); and

(2) for any successful employee claim for unauthorized employer deductions made by
relying on information for changing or canceling deductions under paragraph (c), with
indemnification including any reasonable attorney fees and litigation costs.

(g) Any dispute under this subdivision must be resolved through an unfair labor practice
proceeding under section 179A.13. It is an unfair labor practice if an employer fails to
comply with paragraph (e), and the employer must reimburse deductions that should have
been made or remitted based on a valid authorization given by the employee or employees.

Sec. 2.

Minnesota Statutes 2024, section 181.06, subdivision 2, is amended to read:

Subd. 2.

Payroll deductions.

new text begin (a) new text end A written contract may be entered into between an
employer and an employee wherein the employee authorizes the employer to make payroll
deductions for the purpose of paying union dues, premiums of any life insurance,
hospitalization and surgical insurance, group accident and health insurance, group term life
insurance, group annuities or contributions to credit unions or a community chest fund, a
local arts council, a local science council or a local arts and science council, or Minnesota
benefit association, a federally or state registered political action committee, membership
dues of a relief association governed by sections 424A.091 to 424A.096 or Laws 2013,
chapter 111, article 5, sections 31 to 42, contributions to a nonprofit organization that is tax
exempt under section 501(c) of the Internal Revenue Code, or participation in any employee
stock purchase plan or savings plan for periods longer than 60 days, including gopher state
bonds established under section 16A.645. A private sector employer must make payroll
deductions to a nonlabor organization under this subdivision when requested by five or
more employees.

new text begin (b) A private employee who makes a payroll deduction under paragraph (a) for the
purpose of paying union dues or membership fees may elect to allocate all or a portion of
the private employee's union dues or membership fees to the local, state, or national
organization of the private employee's choice. An exclusive representative of the organization
shall provide union members notice of this option, and any dues deduction authorization
must clearly provide members this choice. In the absence of an exclusive representative, a
private union member has the right to request and be allowed a payroll deduction for the
local, state, or national organization of the private union member's choice.
new text end