Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 216-S.F.No. 441 
           An act relating to employment; requiring employers to 
          indemnify employees for liability arising out of the 
          scope of employment; proposing coding for new law in 
          Minnesota Statutes, chapter 181. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  [181.970] [EMPLOYEE INDEMNIFICATION.] 
    Subdivision 1.  [INDEMNIFICATION REQUIRED.] An employer 
shall defend and indemnify its employee for civil damages, 
penalties, or fines claimed or levied against the employee, 
provided that the employee: 
    (1) was acting in the performance of the duties of the 
employee's position; 
    (2) was not guilty of intentional misconduct, willful 
neglect of the duties of the employee's position, or bad faith; 
and 
    (3) has not been indemnified by another person for the same 
damages, penalties, or fines. 
    Subd. 2.  [EXCEPTION.] Subdivision 1 does not apply to: 
    (1) employees of the state or a municipality governed by 
section 3.736 or 466.07; 
    (2) employees who are subject to a contract or other 
agreement governing indemnification rights; 
    (3) employees and employers who are governed by 
indemnification provisions under section 300.083, 302A.521, 
317A.521, or 322B.699, or similar laws of this state or another 
state specifically governing indemnification of employees of 
business or nonprofit corporations, limited liability companies, 
or other legal entities; or 
    (4) indemnification rights for a particular liability 
specifically governed by other law. 
    Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
    Section 1 is effective August 1, 1993, and applies to 
claims or causes of action arising on or after that date. 
    Presented to the governor May 14, 1993 
    Signed by the governor May 17, 1993, 11:06 a.m.