2005 Minnesota Statutes

     268.184 Employer misconduct; penalty. 

    Subdivision 1.    Administrative penalties.  (a) If the 
 commissioner finds that any employer or any employee, officer, 
 or agent of any employer, is in collusion with any applicant for 
 the purpose of assisting the applicant to receive unemployment 
 benefits fraudulently, the employer shall be penalized $500 or 
 the amount of unemployment benefits determined to be overpaid, 
 whichever is greater. 

    (b) If the commissioner finds that any employer or any 
 employee, officer, or agent of an employer has made (1) a false 
 statement or representation knowing it to be false, including 
 reporting employees on a wage detail report under section 
 268.044 knowing the employees actually are employed by a 
 different employer, or (2) has made a false statement or 
 representation without a good faith belief as to correctness of 
 the statement or representation, or (3) who knowingly fails to 
 disclose a material fact, to prevent or reduce the payment of 
 unemployment benefits to any applicant or to reduce or avoid any 
 payment required from an employer under this chapter or section 
 116L.20, the employer shall be penalized $500, or 50 percent of 
 the reduced unemployment benefits or payment required, whichever 
 is greater. 

    (c) If the commissioner finds that an employer failed or 
 refused to honor a subpoena issued under section 268.105, 
 subdivision 4, or section 268.188, the employer shall be 
 penalized $500 and any costs of enforcing the subpoena, 
 including attorney fees. 

    (d) Penalties under this subdivision shall be in addition 
 to any other penalties and subject to the same collection 
 procedures that apply to past due taxes.  Penalties shall be 
 paid to the department within 30 calendar days of assessment and 
 credited to the contingent account. 

    (e) The assessment of the penalty shall be final unless the 
 employer files an appeal within 30 calendar days after the 
 sending of notice of the penalty to the employer by mail or 
 electronic transmission.  Proceedings on the appeal shall be 
 conducted in accordance with section 268.105. 

    Subd. 1a.    Notification and misreporting penalties.  
 (a) If the commissioner finds that any employer or agent of an 
 employer failed to meet the notification requirements of section 
 268.051, subdivision 4, the employer shall be assessed a penalty 
 of $5,000 or two percent of the first full quarterly payroll 
 acquired, whichever is higher.  Payroll is wages paid as defined 
 in section 268.035, subdivision 30.  The penalty under this 
 paragraph shall be canceled if the commissioner determines that 
 the failure occurred because of ignorance or inadvertence. 

    (b) If the commissioner finds that any individual advised 
 an employer to violate the employer's notification requirements 
 under section 268.051, subdivision 4, the individual, and that 
 individual's employer, shall each be assessed the penalty in 
 paragraph (a). 

    (c) If the commissioner finds that any person or agent of a 
 person violated the reporting requirements of section 268.0435 
 or 268.046, the person shall be assessed a penalty of $5,000 or 
 two percent of the quarterly payroll reported in violation of 
 section 268.0435 or 268.046, whichever is higher.  Payroll is 
 wages paid as defined in section 268.035, subdivision 30. 

    (d) Penalties under this subdivision shall be in addition 
 to any other penalties and subject to the same collection 
 procedures that apply to past due amounts from an employer.  
 Penalties must be paid within 30 calendar days after sending of 
 the notice of penalty. 

    (e) The assessment of a penalty shall be final unless the 
 person assessed files an appeal within 30 calendar days after 
 sending of the notice of the penalty by mail or electronic 
 transmission.  Proceedings on the appeal shall be conducted in 
 accordance with section 268.105. 

    Subd. 2.    Criminal penalties.  Any employer or any 
 officer or agent of an employer or any other individual who: 

    (1) makes a false statement or representation knowing it to 
 be false; 

    (2) knowingly fails to disclose a material fact, including 
 notification required under section 268.051, subdivision 4; or 

    (3) knowingly advises or assists an employer in violating 
 clause (1) or (2), to avoid or reduce any payment required from 
 an employer under this chapter or section 116L.20, or to prevent 
 or reduce the payment of unemployment benefits to any applicant, 
 is guilty of a gross misdemeanor unless the underpayment exceeds 
 $500, in that case the individual is guilty of a felony.  

    HIST: Ex1936 c 2 s 16; 1941 c 554 s 15; 1951 c 442 s 11; 1953 
 c 97 s 18; 1969 c 567 s 3; 1973 c 254 s 3; 1975 c 336 s 24; 1977 
 c 4 s 10; 1977 c 430 s 25 subd 1; 1979 c 181 s 17,18; 1Sp1982 c 
 1 s 37-40; 1983 c 216 art 1 s 42,87; 1983 c 372 s 45,46; 1985 c 
 248 s 70; 1Sp1985 c 14 art 9 s 75; 1986 c 444; 1987 c 385 s 
 40-45; 1988 c 712 s 3; 1989 c 209 art 2 s 1; 1990 c 566 s 8; 
 1992 c 484 s 15; 1994 c 483 s 1; 1995 c 54 s 21-24; 1996 c 417 s 
 29,31; 1997 c 66 s 76,79; 1998 c 265 s 38; 1999 c 107 s 56,66; 
 2000 c 343 s 4; 2001 c 175 s 47; 2004 c 183 s 83; 2005 c 112 art 
 1 s 11-13