1998 Minnesota Statutes

     268.681 Business employment. 

    Subdivision 1.    Eligible businesses.  A business 
 employer is an eligible employer if it enters into a written 
 contract, signed and subscribed to under oath, with a county or 
 its designee, containing assurances that: 

    (a) funds received by a business shall be used only as 
 permitted under sections 268.672 to 268.682; 

    (b) the business has submitted information to the county, 
 its designee, or workforce service area (1) describing the 
 duties and proposed compensation of each employee proposed to be 
 hired under the program; and (2) demonstrating that, with the 
 funds provided under sections 268.672 to 268.682, the business 
 is likely to succeed and continue to employ persons hired using 
 wage subsidies; 

    (c) the business will use funds exclusively for 
 compensation and benefits of eligible job applicants and will 
 provide employees hired with these funds with benefits and other 
 terms and conditions of employment comparable to those provided 
 to other employees of the business who do comparable work; 

    (d) the funds are necessary to allow the business to begin, 
 expand, or to fill other open positions but not to fill 
 positions which would be filled in the absence of wage 
 subsidies; 

    (e) the business will cooperate with the county and the 
 commissioner in collecting data to assess the result of wage 
 subsidies and the effectiveness of comprehensive job readiness 
 and job retention services; and 

    (f) the business is in compliance with all applicable 
 affirmative action, fair labor, health, safety, and 
 environmental standards.  

    Subd. 1a.    Ineligible businesses.  A business employer 
 is ineligible to participate in the program and is ineligible to 
 receive wage subsidy money if:  

    (1) the business is a temporary employment agency; or 

    (2) the business is a restaurant.  

    For purposes of this subdivision, "temporary employment 
 agency" means a business that hires people to work in temporary 
 positions for employers who are clients of that business.  

    For purposes of this subdivision, "restaurant" includes, 
 but is not limited to, fast food restaurants. 

    Subd. 1b.    Discharge of program participant.  A 
 program participant discharged from employment may challenge the 
 discharge as a violation of subdivision 1. 

    Subd. 2.    Priorities.  (a) In allocating funds among 
 eligible businesses, the county or its designee shall give 
 priority to: 

    (1) businesses that will provide applicants with on-the-job 
 training and marketable job skills; 

    (2) businesses engaged in manufacturing; 

    (3) nonretail businesses that are small businesses as 
 defined in section 645.445; and 

    (4) businesses that export products outside the state. 

    (b) In addition to paragraph (a), a county must give 
 priority to businesses that: 

    (1) have a high potential for growth and long-term job 
 creation; 

    (2) are labor intensive; 

    (3) make high use of local and Minnesota resources; 

    (4) are under ownership of women and minorities; 

    (5) make high use of new technology; 

    (6) produce energy conserving materials or services or are 
 involved in development of renewable sources of energy; and 

    (7) have their primary place of business in Minnesota.  

    Subd. 3.    Payback.  (a) A business receiving wage 
 subsidies shall repay 70 percent of the amount initially 
 received for each eligible job applicant employed, if the 
 employee does not continue in the employment of the business 
 beyond the six-month subsidized period.  If the employee 
 continues in the employment of the business for one year or 
 longer after the six-month subsidized period, the business need 
 not repay any of the funds received for that employee's wages.  
 If the employee continues in the employment of the business for 
 a period of less than one year after the expiration of the 
 six-month subsidized period, the business shall receive a 
 proportional reduction in the amount it must repay. 

    (b) If an employer dismisses an employee for good cause and 
 works in good faith with the local service unit or its 
 contractor to employ and train another person referred by the 
 county, its designee, or workforce service area, the payback 
 formula shall apply as if the original person had continued in 
 employment.  

    (c) If a business receiving funds under the program reduces 
 the hourly wage after the six-month subsidy, the business must 
 repay a portion of the subsidy in direct proportion to the 
 amount that the hourly wage is reduced. 

    (d) A repayment schedule shall be negotiated and agreed to 
 by the county and the business prior to the disbursement of the 
 funds and is subject to renegotiation.  The county shall retain 
 payments received under this subdivision for any administrative 
 costs associated with the collection of the funds under this 
 subdivision and for entering into new wage subsidy agreements.  

    (e) If an employer is more than 60 days late in repaying a 
 subsidy as required in this subdivision, the county may engage a 
 licensed collection agency or refer the matter to the department 
 for collection under chapter 16D. 

    Subd. 4.  Repealed, 1990 c 594 art 3 s 15 

    Subd. 4.    Successorship.  A contract entered into by 
 an owner, employer, or manager under the wage subsidy program is 
 legally binding on any successor owner, employer, or manager. 

    HIST: 1983 c 312 art 7 s 11; 1Sp1985 c 14 art 9 s 63; 1987 c 
 403 art 2 s 141,142; 1990 c 568 art 4 s 69-71; 1990 c 594 art 3 
 s 11; 1997 c 200 art 3 s 17