HF 2943

as introduced - 94th Legislature (2025 - 2026) Posted on 04/01/2025 11:24am

A bill for an act
relating to retirement; Minnesota Secure Choice Retirement Program; adding
penalties for noncompliance; providing criminal penalties; proposing coding for
new law in Minnesota Statutes, chapter 187.

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

Section 1.

new text begin [187.012] PENALTIES FOR NONCOMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Failure to enroll covered employees or distribute information. new text end

new text begin (a)
The board must assess penalties against a covered employer that fails to comply with section
187.07, subdivision 1 or 3 or both subdivisions 1 and 3, beginning with the second
anniversary of the date on which the covered employer was first required to comply with
section 187.07, subdivision 1 or 3, as applicable.
new text end

new text begin (b) The board must assess the following penalties for a covered employer's failure to
comply with section 187, subdivision 1 or 3:
new text end

new text begin (1) on the second anniversary, a penalty of $100 per covered employee, not to exceed
$4,000;
new text end

new text begin (2) on the third anniversary, a penalty of $200 per covered employee, not to exceed
$6,000;
new text end

new text begin (3) on the fourth anniversary, a penalty of $300 per covered employee; and
new text end

new text begin (4) on each anniversary after the fourth anniversary, a penalty of $500 per covered
employee.
new text end

new text begin (c) If the covered employer fails to comply with both subdivisions 1 and 3, the board
must assess two times the penalties in paragraph (b).
new text end

new text begin (d) The date on which a covered employer is first required to comply with section 187.07,
subdivision 1, is the following:
new text end

new text begin (1) for paragraph (a), on or before the 30th day after the first day of employment of a
covered employee hired by the covered employer; and
new text end

new text begin (2) for paragraph (b), on or before the 30th day after the end of the enrollment window
applicable to the covered employer.
new text end

new text begin (e) The date on which a covered employer is first required to comply with section 187.07,
subdivision 3, is the following:
new text end

new text begin (1) for paragraph (a), for a newly hired covered employee no later than 14 days after the
covered employee's first day of employment; and
new text end

new text begin (2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck
from which employee contributions could be deducted for transmittal to the program.
new text end

new text begin Subd. 2. new text end

new text begin Notice and waiver. new text end

new text begin Before assessing a penalty under subdivision 1, the board
must provide the covered employer with a written notice informing the covered employer
of the amount of the penalty and that the penalty will not be assessed if:
new text end

new text begin (1) the covered employer cures the violation no later than 30 days after the date of the
notice; or
new text end

new text begin (2) the board waives the penalty at the request of the covered employer due to extenuating
circumstances.
new text end

new text begin Subd. 3. new text end

new text begin Failure to remit contributions. new text end

new text begin (a) If the executive director has reason to
believe, based on communication from a covered employee or another source, that a covered
employer has failed to comply with section 187.07, subdivision 2, by not remitting payroll
deduction contributions withheld from the paycheck of one or more covered employees
within 30 days after the deduction is withheld, the executive director must make a written
demand to the covered employer requiring the covered employer to immediately remit to
the program the withheld contributions plus interest at the annual rate specified in section
356.59, subdivision 2, for the period beginning with the tenth day after the contribution was
deducted from the covered employee's paycheck to the date the contribution is remitted to
the program.
new text end

new text begin (b) Any covered employer that willfully and intentionally fails to remit a payroll deduction
contribution within ten days after demand from the executive director is guilty of a
misdemeanor.
new text end

new text begin (c) If the executive director issues a written demand to a covered employer under
paragraph (a) for a second time, the executive director must assess a penalty of $250 for
each employee contribution withheld but not transmitted to the program.
new text end

new text begin Subd. 4. new text end

new text begin Action; damages. new text end

new text begin (a) A covered employee or the attorney general, upon referral
from the board, may bring a civil action against a covered employer for a failure to enroll
covered employees, distribute information, or remit contributions under section 187.07,
subdivisions 1 to 3. A covered employer who is found to have violated these subdivisions
is liable to the program for the civil penalties provided for in this section. A covered employer
who is found to have violated these subdivisions is liable for compensatory damages and
other appropriate relief including but not limited to injunctive relief.
new text end

new text begin (b) The attorney general, upon referral from the board, may bring a criminal action
against a covered employer for the misdemeanor of not remitting contributions under section
187.07, subdivision 2.
new text end

new text begin (c) An action brought under paragraph (a) or (b) may be filed in the district court of the
county in which a violation is alleged to have been committed, where the covered employer
resides or has a principal place of business, or any other court of competent jurisdiction.
new text end

new text begin (d) In an action brought under paragraph (a) or (b), the court must order a covered
employer who is found to have committed a violation to pay to the program or covered
employee, as appropriate, reasonable costs, disbursements, witness fees, and attorney fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment in the 2025 regular or
special session of a bill styled as H.F. No. ..../S.F. No. ...., also referred to as revisor number
25-04680, section 8, or its equivalent.
new text end