256.998 WORK REPORTING SYSTEM.
Subdivision 1. Definitions.
(a) The definitions in this subdivision apply to this section.
(b) "Date of hiring" means the earlier of: (1) the first day for which an employee is owed
compensation by an employer; or (2) the first day that an employee reports to work or performs
labor or services for an employer.
(c) "Earnings" means payment owed by an employer for labor or services rendered by an
(d) "Employee" means a person who resides or works in Minnesota, performs services for
compensation, in whatever form, for an employer and satisfies the criteria of an employee under
chapter 24 of the Internal Revenue Code. Employee does not include:
(1) persons hired for domestic service in the private home of the employer, as defined in
the Federal Tax Code; or
(2) an employee of the federal or state agency performing intelligence or counterintelligence
functions, if the head of such agency has determined that reporting according to this law would
endanger the safety of the employee or compromise an ongoing investigation or intelligence
(e) "Employer" means a person or entity located or doing business in this state that employs
one or more employees for payment, and satisfies the criteria of an employer under chapter 24
of the Internal Revenue Code. Employer includes a labor organization as defined in paragraph
(g). Employer also includes the state, political or other governmental subdivisions of the state,
and the federal government.
(f) "Hiring" means engaging a person to perform services for compensation and includes the
reemploying or return to work of any previous employee who was laid off, furloughed, separated,
granted a leave without pay, or terminated from employment when a period of 90 days elapses
from the date of layoff, furlough, separation, leave, or termination to the date of the person's
return to work.
(g) "Labor organization" means entities located or doing business in this state that meet
the criteria of labor organization under section 2(5) of the National Labor Relations Act. This
includes any entity, that may also be known as a hiring hall, used to carry out requirements
described in chapter 7 of the National Labor Relations Act.
(h) "Payor" means a person or entity located or doing business in Minnesota who pays
money to an independent contractor according to an agreement for the performance of services.
Subd. 2. Work reporting system established.
The commissioner of human services shall
establish a centralized work reporting system for the purpose of receiving and maintaining
information from employers on newly hired or rehired employees. The commissioner of human
services shall take reasonable steps to inform the state's employers of the requirements of this
section and the acceptable processes by which employers can comply with the requirements
of this section.
Subd. 3. Duty to report.
Employers doing business in this state shall report to the
commissioner of human services the hiring of any employee who resides or works in this state to
whom the employer anticipates paying earnings. Employers shall submit reports required under
this subdivision within 20 calendar days of the date of hiring of the employee.
Employers are not required to report the hiring of any person who will be employed for less
than two months' duration; and will have gross earnings less than $250 per month.
Subd. 4. Means to report.
Employers may report by delivering, mailing, or telefaxing a copy
of the employee's federal W-4 form or W-9 form or any other document that contains the required
information, submitting electronic media in a compatible format, toll-free telecommunication, or
other means authorized by the commissioner of human services that will result in timely reporting.
Subd. 5. Report contents.
Reports required under this section must contain:
(1) the employee's name, address, Social Security number, and date of birth when available,
which can be handwritten or otherwise added to the W-4 form, W-9 form, or other document
(2) the employer's name, address, and federal identification number.
Subd. 6. Sanctions.
If an employer fails to report under this section, the commissioner of
human services, by certified mail, shall send the employer a written notice of noncompliance
requesting that the employer comply with the reporting requirements of this section. The notice of
noncompliance must explain the reporting procedure under this section and advise the employer
of the penalty for noncompliance. An employer who has received a notice of noncompliance and
later incurs a second violation is subject to a civil penalty of $25 for each intentionally unreported
employee. An employer who has received a notice of noncompliance is subject to a civil penalty
of $500 for each intentionally unreported employee, if noncompliance is the result of a conspiracy
between an employer and an employee not to supply the required report or to supply a false or
incomplete report. These penalties may be imposed and collected by the commissioner of human
services. An employer who has been served with a notice of noncompliance and incurs a second
or subsequent violation resulting in a civil penalty, has the right to a contested case hearing under
chapter 14. An employer has 20 days from the date of service of the notice, to file a request
for a contested case hearing with the commissioner. The order of the administrative law judge
constitutes the final decision in the case.
Subd. 7. Access to data.
The commissioner of human services shall retain the information
reported to the work reporting system for a period of six months. Data in the work reporting
system may be disclosed to the public authority responsible for child support enforcement, federal
agencies, state and local agencies of other states for the purposes of enforcing state and federal
laws governing child support, and agencies responsible for the administration of programs under
title IV-A of the Social Security Act, the Department of Employment and Economic Development,
and the Department of Labor and Industry.
Subd. 8. Authority to contract.
The commissioner may contract for services to carry out
Subd. 9. Independent contractors.
The state and all political subdivisions of the state, when
acting in the capacity of an employer, shall report the hiring of any person as an independent
contractor to the centralized work reporting system in the same manner as the hiring of an
employee is reported.
Other payors may report independent contractors to whom they make payments that require
the filing of a 1099-MISC report. Payors reporting independent contractors shall report by use
of the same means and provide the same information required under subdivisions 4 and 5. The
commissioner of human services shall establish procedures for payors reporting under this section.
Subd. 10. Use of work reporting system information in determining eligibility for public
The commissioner of human services is authorized to use information
from the work reporting system to determine eligibility for applicants and recipients of public
assistance programs administered by the Department of Human Services. Data including names,
dates of birth, and Social Security numbers of people applying for or receiving public assistance
benefits will be compared to the work reporting system information to determine if applicants or
recipients of public assistance are employed. County agencies will be notified of discrepancies in
information obtained from the work reporting system.
Subd. 11. Action on information.
Upon receipt of the discrepant information, county
agencies will notify clients of the information and request verification of employment status and
earnings. County agencies must attempt to resolve the discrepancy within 45 days of receipt of
Subd. 12. Client notification.
Persons applying for public assistance programs administered
by the Department of Human Services will be notified at the time of application that data
including their name, date of birth, and Social Security number will be shared with the work
reporting system to determine possible employment. All current public assistance recipients will
be notified of this provision prior to its implementation.
History: 1995 c 257 art 1 s 16; 1997 c 203 art 6 s 15-20; 1997 c 245 art 1 s 10; art 3
s 7; 2004 c 206 s 52