2006 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.
History: 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