1.1 A bill for an act 1.2 relating to employment; providing for earned sick and safe time; requiring a report; 1.3 authorizing rulemaking; appropriating money; amending Minnesota Statutes 2022, 1.4 sections 177.27, subdivisions 2, 4, 7; 181.942, subdivision 1; proposing coding 1.5 for new law in Minnesota Statutes, chapters 177; 181; repealing Minnesota Statutes 1.6 2022, section 181.9413. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 ARTICLE 1 1.9 EARNED SICK AND SAFE TIME 1.10 Section 1. Minnesota Statutes 2022, section 181.942, subdivision 1, is amended to read: 1.11 Subdivision 1.Comparable position.(a) An employee returning from a leave of absence 1.12under section 181.941 is entitled to return to employment in the employee's former position 1.13or in a position of comparable duties, number of hours, and pay. An employee returning 1.14from a leave of absence longer than one month must notify a supervisor at least two weeks 1.15prior to return from leave. An employee returning from a leave under section 181.9412 or 1.16181.9413 sections 181.9445 to 181.9448 is entitled to return to employment in the employee's 1.17former position. 1.18 (b) If, during a leave under sections 181.940 to 181.944, the employer experiences a 1.19layoff and the employee would have lost a position had the employee not been on leave, 1.20pursuant to the good faith operation of a bona fide layoff and recall system, including a 1.21system under a collective bargaining agreement, the employee is not entitled to reinstatement 1.22in the former or comparable position. In such circumstances, the employee retains all rights 1.23under the layoff and recall system, including a system under a collective bargaining 1.24agreement, as if the employee had not taken the leave. 1Article 1 Section 1. REVISOR SS/HL 23-0141612/29/22 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 19 NINETY-THIRD SESSION Authored by Olson, L.; Long; Hortman; Hassan; Xiong and others01/04/2023 The bill was read for the first time and referred to the Committee on Labor and Industry Finance and Policy 2.1 Sec. 2. [181.9445] DEFINITIONS. 2.2 Subdivision 1.Definitions.For the purposes of section 177.50 and sections 181.9445 2.3to 181.9448, the terms defined in this section have the meanings given them. 2.4 Subd. 2.Commissioner."Commissioner" means the commissioner of labor and industry 2.5or authorized designee or representative. 2.6 Subd. 3.Domestic abuse."Domestic abuse" has the meaning given in section 518B.01. 2.7 Subd. 4.Earned sick and safe time."Earned sick and safe time" means leave, including 2.8paid time off and other paid leave systems, that is paid at the same hourly rate as an employee 2.9earns from employment that may be used for the same purposes and under the same 2.10conditions as provided under section 181.9447, but in no case shall this hourly rate be less 2.11than that provided under section 177.24 or an applicable local minimum wage. 2.12 Subd. 5.Employee."Employee" means any person who is employed by an employer, 2.13including temporary and part-time employees, who performs work for at least 80 hours in 2.14a year for that employer in Minnesota. Employee does not include an independent contractor. 2.15 Subd. 6.Employer."Employer" means a person who has one or more employees. 2.16Employer includes an individual, a corporation, a partnership, an association, a business 2.17trust, a nonprofit organization, a group of persons, the state of Minnesota, a county, town, 2.18city, school district, or other governmental subdivision. In the event that a temporary 2.19employee is supplied by a staffing agency, absent a contractual agreement stating otherwise, 2.20that individual shall be an employee of the staffing agency for all purposes of section 177.50 2.21and sections 181.9445 to 181.9448. Employer does not include the United States government. 2.22 Subd. 7.Family member."Family member" means: 2.23 (1) an employee's: 2.24 (i) child, foster child, adult child, legal ward, child for whom the employee is legal 2.25guardian, or child to whom the employee stands or stood in loco parentis; 2.26 (ii) spouse or registered domestic partner; 2.27 (iii) sibling, stepsibling, or foster sibling; 2.28 (iv) biological, adoptive, or foster parent, stepparent, or a person who stood in loco 2.29parentis when the employee was a minor child; 2.30 (v) grandchild, foster grandchild, or stepgrandchild; 2.31 (vi) grandparent or stepgrandparent; 2Article 1 Sec. 2. REVISOR SS/HL 23-0141612/29/22 3.1 (vii) a child of a sibling of the employee; 3.2 (viii) a sibling of the parents of the employee; or 3.3 (ix) a child-in-law or sibling-in-law; 3.4 (2) any of the family members listed in clause (1) of a spouse or registered domestic 3.5partner; 3.6 (3) any other individual related by blood or whose close association with the employee 3.7is the equivalent of a family relationship; and 3.8 (4) up to one individual annually designated by the employee. 3.9 Subd. 8.Health care professional."Health care professional" means (1) any person 3.10licensed, certified, or otherwise authorized under federal or state law to provide medical or 3.11emergency services, including doctors, physician assistants, nurses, and emergency room 3.12personnel; or 3.13 (2) any other individual determined by the commissioner by rule, in accordance with 3.14the rulemaking procedures in the Administrative Procedure Act, to be capable of providing 3.15health care services. 3.16 Subd. 9.Prevailing wage rate."Prevailing wage rate" has the meaning given in section 3.17177.42 and as calculated by the Department of Labor and Industry. 3.18 Subd. 10.Retaliatory personnel action."Retaliatory personnel action" means: 3.19 (1) any form of intimidation, threat, reprisal, harassment, discrimination, or adverse 3.20employment action, including discipline, discharge, suspension, transfer, or reassignment 3.21to a lesser position in terms of job classification, job security, or other condition of 3.22employment; reduction in pay or hours or denial of additional hours; the accumulation of 3.23points under an employer's absence control policy or attendance point system; informing 3.24another employer that the person has engaged in activities protected by this chapter; or 3.25reporting or threatening to report the actual or suspected citizenship or immigration status 3.26of an employee, former employee, or family member of an employee to a federal, state, or 3.27local agency; and 3.28 (2) interference with or punishment for participating in any manner in an investigation, 3.29proceeding, or hearing under this chapter. 3.30 Subd. 11.Sexual assault."Sexual assault" means an act that constitutes a violation 3.31under sections 609.342 to 609.3453 or 609.352. 3.32 Subd. 12.Stalking."Stalking" has the meaning given in section 609.749. 3Article 1 Sec. 2. REVISOR SS/HL 23-0141612/29/22 4.1 Subd. 13.Year."Year" means a regular and consecutive 12-month period, as determined 4.2by an employer and clearly communicated to each employee of that employer. 4.3 Sec. 3. [181.9446] ACCRUAL OF EARNED SICK AND SAFE TIME. 4.4 (a) An employee accrues a minimum of one hour of earned sick and safe time for every 4.530 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. 4.6Employees may not accrue more than 48 hours of earned sick and safe time in a year unless 4.7the employer agrees to a higher amount. 4.8 (b)(1) Except as provided in clause (2), employers must permit an employee to carry 4.9over accrued but unused sick and safe time into the following year. The total amount of 4.10accrued but unused earned sick and safe time for an employee must not exceed 80 hours at 4.11any time, unless an employer agrees to a higher amount. Alternatively, in lieu of carryover 4.12of unused earned sick and safe time provided pursuant to this section from one year to the 4.13next, an employer may pay an employee for unused earned sick and safe time provided 4.14pursuant to this section at the end of a year and provide the employee with an amount of 4.15earned sick and safe time that meets or exceeds the requirements of this section that is 4.16available for the employee's immediate use at the beginning of the subsequent year. 4.17 (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the 4.18following year as provided under clause (1), an employer may pay an employee for accrued 4.19but unused sick and safe time at the end of a year at the same hourly rate as an employee 4.20earns from employment, provided that the employer provides an employee with an amount 4.21of earned sick and safe time that meets or exceeds the requirements of this section that is 4.22available for the employee's immediate use at the beginning of the subsequent year. In no 4.23case shall this hourly rate be less than that provided under section 177.24 or an applicable 4.24local minimum wage. 4.25 (c) Employees who are exempt from overtime requirements under United States Code, 4.26title 29, section 213(a)(1), as amended through the effective date of this section, are deemed 4.27to work 40 hours in each workweek for purposes of accruing earned sick and safe time, 4.28except that an employee whose normal workweek is less than 40 hours will accrue earned 4.29sick and safe time based on the normal workweek. 4.30 (d) Earned sick and safe time under this section begins to accrue at the commencement 4.31of employment of the employee. 4.32 (e) Employees may use earned sick and safe time as it is accrued. 4Article 1 Sec. 3. REVISOR SS/HL 23-0141612/29/22 5.1 Sec. 4. [181.9447] USE OF EARNED SICK AND SAFE TIME. 5.2 Subdivision 1.Eligible use.An employee may use accrued earned sick and safe time 5.3for: 5.4 (1) an employee's: 5.5 (i) mental or physical illness, injury, or other health condition; 5.6 (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, 5.7or health condition; or 5.8 (iii) need for preventive medical or health care; 5.9 (2) care of a family member: 5.10 (i) with a mental or physical illness, injury, or other health condition; 5.11 (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, 5.12injury, or other health condition; or 5.13 (iii) who needs preventive medical or health care; 5.14 (3) absence due to domestic abuse, sexual assault, or stalking of the employee or 5.15employee's family member, provided the absence is to: 5.16 (i) seek medical attention related to physical or psychological injury or disability caused 5.17by domestic abuse, sexual assault, or stalking; 5.18 (ii) obtain services from a victim services organization; 5.19 (iii) obtain psychological or other counseling; 5.20 (iv) seek relocation or take steps to secure an existing home due to domestic abuse, 5.21sexual assault, or stalking; or 5.22 (v) seek legal advice or take legal action, including preparing for or participating in any 5.23civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, 5.24or stalking; 5.25 (4) closure of the employee's place of business due to weather or other public emergency 5.26or an employee's need to care for a family member whose school or place of care has been 5.27closed due to weather or other public emergency; 5.28 (5) the employee's inability to work or telework because the employee is: (i) prohibited 5.29from working by the employer due to health concerns related to the potential transmission 5.30of a communicable illness related to a public health emergency; or (ii) seeking or awaiting 5Article 1 Sec. 4. REVISOR SS/HL 23-0141612/29/22 6.1the results of a diagnostic test for, or a medical diagnosis of, a communicable disease related 6.2to a public emergency and such employee has been exposed to a communicable disease or 6.3the employee's employer has requested a test or diagnosis; and 6.4 (6) when it has been determined by the health authorities having jurisdiction or by a 6.5health care professional that the presence of the employee or family member of the employee 6.6in the community would jeopardize the health of others because of the exposure of the 6.7employee or family member of the employee to a communicable disease, whether or not 6.8the employee or family member has actually contracted the communicable disease. 6.9 Subd. 2.Notice.An employer may require notice of the need for use of earned sick and 6.10safe time as provided in this paragraph. If the need for use is foreseeable, an employer may 6.11require advance notice of the intention to use earned sick and safe time but must not require 6.12more than seven days' advance notice. If the need is unforeseeable, an employer may require 6.13an employee to give notice of the need for earned sick and safe time as soon as practicable. 6.14An employer that requires notice of the need to use earned sick and safe time in accordance 6.15with this subdivision shall have a written policy containing reasonable procedures for 6.16employees to provide notice of the need to use earned sick and safe time, and shall provide 6.17a written copy of such policy to employees. If a copy of the written policy has not been 6.18provided to an employee, an employer shall not deny the use of earned sick and safe time 6.19to the employee on that basis. 6.20 Subd. 3.Documentation.(a) When an employee uses earned sick and safe time for 6.21more than three consecutive days, an employer may require reasonable documentation that 6.22the earned sick and safe time is covered by subdivision 1. 6.23 (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), 6.24reasonable documentation may include a signed statement by a health care professional 6.25indicating the need for use of earned sick and safe time. However, if the employee or 6.26employee's family member did not receive services from a health care professional, or if 6.27documentation cannot be obtained from a health care professional in a reasonable time or 6.28without added expense, then reasonable documentation for the purposes of this paragraph 6.29may include a written statement from the employee indicating that the employee is using 6.30or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause 6.31(1), (2), (5), or (6). 6.32 (c) For earned sick and safe time under subdivision 1, clause (3), an employer must 6.33accept a court record or documentation signed by a volunteer or employee of a victims 6Article 1 Sec. 4. REVISOR SS/HL 23-0141612/29/22 7.1services organization, an attorney, a police officer, or an antiviolence counselor as reasonable 7.2documentation. 7.3 (d) For earned sick and safe time to care for a family member under subdivision 1, clause 7.4(4), an employer must accept as reasonable documentation a written statement from the 7.5employee indicating that the employee is using or used earned sick and safe time for a 7.6qualifying purpose as reasonable documentation. 7.7 (e) An employer must not require disclosure of details relating to domestic abuse, sexual 7.8assault, or stalking or the details of an employee's or an employee's family member's medical 7.9condition as related to an employee's request to use earned sick and safe time under this 7.10section. 7.11 (f) Written statements by an employee may be written in the employee's first language 7.12and need not be notarized or in any particular format. 7.13 Subd. 4.Replacement worker.An employer may not require, as a condition of an 7.14employee using earned sick and safe time, that the employee seek or find a replacement 7.15worker to cover the hours the employee uses as earned sick and safe time. 7.16 Subd. 5.Increment of time used.Earned sick and safe time may be used in the smallest 7.17increment of time tracked by the employer's payroll system, provided such increment is not 7.18more than four hours. 7.19 Subd. 6.Retaliation prohibited.(a) An employer shall not take retaliatory personnel 7.20action against a person because the person has exercised or attempted to exercise rights 7.21protected under this act, including but not limited to because the person requested earned 7.22sick and safe time, used earned sick and safe time, requested a statement of accrued sick 7.23and safe time, informed any person of his or her potential rights under sections 181.9445 7.24to 181.9448, or made a complaint or filed an action to enforce a right to earned sick and 7.25safe time under this section. 7.26 (b) It shall be unlawful for an employer's absence control policy or attendance point 7.27system to count earned sick and safe time taken under this act as an absence that may lead 7.28to or result in a retaliatory personnel action or any other adverse action. 7.29 (c) It shall be unlawful for an employer or any other person to interfere with, restrain, 7.30or deny the exercise of, or the attempt to exercise, any right protected under this act. A 7.31person need not explicitly refer to this act or the rights enumerated herein to be protected 7.32from retaliatory personnel actions. 7Article 1 Sec. 4. REVISOR SS/HL 23-0141612/29/22 8.1 Subd. 7.Pay and benefits after leave.An employee returning from a leave under this 8.2section is entitled to return to employment at the same rate of pay the employee had been 8.3receiving when the leave commenced, plus any automatic adjustments in the employee's 8.4pay scale that occurred during the leave period. The employee returning from a leave is 8.5entitled to retain all accrued preleave benefits of employment and seniority as if there had 8.6been no interruption in service, provided that nothing under this section prevents the accrual 8.7of benefits or seniority during the leave pursuant to a collective bargaining or other agreement 8.8between the employer and employees. 8.9 Subd. 8.Part-time return from leave.An employee, by agreement with the employer, 8.10may return to work part time during the leave period without forfeiting the right to return 8.11to employment at the end of the leave, as provided under this section. 8.12 Subd. 9.Notice and posting by employer.(a) Employers must give notice to all 8.13employees that they are entitled to earned sick and safe time, including the amount of earned 8.14sick and safe time, the accrual year for the employee, the terms of its use under this section, 8.15and a copy of the written policy for providing notice as provided under subdivision 2; that 8.16retaliatory personnel actions against employees who request or use earned sick and safe 8.17time are prohibited; and that each employee has the right to file a complaint or bring a civil 8.18action if earned sick and safe time is denied by the employer or the employee is retaliated 8.19against for requesting or using earned sick and safe time. 8.20 (b) Employers must supply employees with a notice in English and other appropriate 8.21languages that contains the information required in paragraph (a) at commencement of 8.22employment or the effective date of this section, whichever is later. 8.23 (c) The means used by the employer must be at least as effective as the following options 8.24for providing notice: 8.25 (1) posting a copy of the notice at each location where employees perform work and 8.26where the notice must be readily observed and easily reviewed by all employees performing 8.27work; 8.28 (2) providing a paper or electronic copy of the notice to employees; or 8.29 (3) a conspicuous posting in a web-based or app-based platform through which an 8.30employee performs work. 8.31The notice must contain all information required under paragraph (a). The commissioner 8.32shall create and make available to employers a poster and a model notice that contains the 8.33information required under paragraph (a) for their use in complying with this section. 8Article 1 Sec. 4. REVISOR SS/HL 23-0141612/29/22 9.1 (d) An employer that provides an employee handbook to its employees must include in 9.2the handbook notice of employee rights and remedies under this section. 9.3 Subd. 10.Required statement to employee.(a) Upon request of the employee, the 9.4employer must provide, in writing or electronically, current information stating the 9.5employee's amount of: 9.6 (1) earned sick and safe time available to the employee; and 9.7 (2) used earned sick and safe time. 9.8 (b) Employers may choose a reasonable system for providing the information in paragraph 9.9(a), including but not limited to listing information on each pay stub or developing an online 9.10system where employees can access their own information. 9.11 Subd. 11.Employer records.(a) Employers shall retain accurate records documenting 9.12hours worked by employees and earned sick and safe time taken and comply with all 9.13requirements under section 177.30. 9.14 (b) An employer must allow an employee to inspect records required by this section and 9.15relating to that employee at a reasonable time and place. 9.16 Subd. 12.Confidentiality and nondisclosure.(a) If, in conjunction with this section, 9.17an employer possesses: 9.18 (1) health or medical information regarding an employee or an employee's family 9.19member; 9.20 (2) information pertaining to domestic abuse, sexual assault, or stalking; 9.21 (3) information that the employee has requested or obtained leave under this section; or 9.22 (4) any written or oral statement, documentation, record, or corroborating evidence 9.23provided by the employee or an employee's family member, the employer must treat such 9.24information as confidential. 9.25Information given by an employee may only be disclosed by an employer if the disclosure 9.26is requested or consented to by the employee, when ordered by a court or administrative 9.27agency, or when otherwise required by federal or state law. 9.28 (b) Records and documents relating to medical certifications, recertifications, or medical 9.29histories of employees or family members of employees created for purposes of section 9.30177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records 9.31separate from the usual personnel files. At the request of the employee, the employer must 9Article 1 Sec. 4. REVISOR SS/HL 23-0141612/29/22 10.1destroy or return the records required by sections 181.9445 to 181.9448 that are older than 10.2three years prior to the current calendar year. 10.3 (c) Employers may not discriminate against any employee based on records created for 10.4the purposes of section 177.50 or sections 181.9445 to 181.9448. 10.5 Sec. 5. [181.9448] EFFECT ON OTHER LAW OR POLICY. 10.6 Subdivision 1.No effect on more generous sick and safe time policies.(a) Nothing 10.7in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting 10.8or retaining earned sick and safe time policies that meet or exceed, and do not otherwise 10.9conflict with, the minimum standards and requirements provided in sections 181.9445 to 10.10181.9448. 10.11 (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of 10.12parties to a collective bargaining agreement to bargain and agree with respect to earned sick 10.13and safe time policies or to diminish the obligation of an employer to comply with any 10.14contract, collective bargaining agreement, or any employment benefit program or plan that 10.15meets or exceeds, and does not otherwise conflict with, the minimum standards and 10.16requirements provided in this section. 10.17 (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or 10.18otherwise affect the applicability of any other law, regulation, requirement, policy, or 10.19standard that provides for a greater amount, accrual, or use by employees of paid sick and 10.20safe time or that extends other protections to employees. 10.21 (d) Employers who provide earned sick and safe time to their employees under a paid 10.22time off policy or other paid leave policy that may be used for the same purposes and under 10.23the same conditions as earned sick and safe time, and that meets or exceeds, and does not 10.24otherwise conflict with, the minimum standards and requirements provided in sections 10.25181.9445 to 181.9448 are not required to provide additional earned sick and safe time. 10.26 (e) An employer may opt to satisfy the requirements of sections 181.9445 to 181.9448 10.27for construction industry employees by: 10.28 (1) paying at least the prevailing wage rate as defined by section 177.42 and as calculated 10.29by the Department of Labor and Industry; or 10.30 (2) paying at least the required rate established in a registered apprenticeship agreement 10.31for apprentices registered with the Department of Labor and Industry. 10Article 1 Sec. 5. REVISOR SS/HL 23-0141612/29/22 11.1An employer electing this option is deemed to be in compliance with sections 181.9445 to 11.2181.9448 for construction industry employees who receive either at least the prevailing 11.3wage rate or the rate required in the applicable apprenticeship agreement regardless of 11.4whether the employees are working on private or public projects. 11.5 (f) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy 11.6whereby employees may donate unused accrued sick and safe time to another employee. 11.7 (g) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and 11.8safe time to an employee before accrual by the employee. 11.9 Subd. 2.Termination; separation; transfer.Sections 181.9445 to 181.9448 do not 11.10require financial or other reimbursement to an employee from an employer upon the 11.11employee's termination, resignation, retirement, or other separation from employment for 11.12accrued earned sick and safe time that has not been used. If an employee is transferred to 11.13a separate division, entity, or location, but remains employed by the same employer, the 11.14employee is entitled to all earned sick and safe time accrued at the prior division, entity, or 11.15location and is entitled to use all earned sick and safe time as provided in sections 181.9445 11.16to 181.9448. When there is a separation from employment and the employee is rehired 11.17within 180 days of separation by the same employer, previously accrued earned sick and 11.18safe time that had not been used must be reinstated. An employee is entitled to use accrued 11.19earned sick and safe time and accrue additional earned sick and safe time at the 11.20commencement of reemployment. 11.21 Subd. 3.Employer succession.(a) When a different employer succeeds or takes the 11.22place of an existing employer, all employees of the original employer who remain employed 11.23by the successor employer are entitled to all earned sick and safe time accrued but not used 11.24when employed by the original employer, and are entitled to use all earned sick and safe 11.25time previously accrued but not used. 11.26 (b) If, at the time of transfer of the business, employees are terminated by the original 11.27employer and hired within 30 days by the successor employer following the transfer, those 11.28employees are entitled to all earned sick and safe time accrued but not used when employed 11.29by the original employer, and are entitled to use all earned sick and safe time previously 11.30accrued but not used. 11.31Sec. 6. SEVERABILITY. 11.32 If any provision of this act or application thereof to any person or circumstance is judged 11.33invalid, the invalidity shall not affect other provisions or applications of the act which can 11Article 1 Sec. 6. REVISOR SS/HL 23-0141612/29/22 12.1be given effect without the invalid provision or application, and to this end the provisions 12.2of this act are declared severable. 12.3 Sec. 7. REPEALER. 12.4 Minnesota Statutes 2022, section 181.9413, is repealed. 12.5 Sec. 8. EFFECTIVE DATE. 12.6 This article is effective 180 days following final enactment. 12.7 ARTICLE 2 12.8 EARNED SICK AND SAFE TIME ENFORCEMENT 12.9 Section 1. Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read: 12.10 Subd. 2.Submission of records; penalty.The commissioner may require the employer 12.11of employees working in the state to submit to the commissioner photocopies, certified 12.12copies, or, if necessary, the originals of employment records which the commissioner deems 12.13necessary or appropriate. The records which may be required include full and correct 12.14statements in writing, including sworn statements by the employer, containing information 12.15relating to wages, hours, names, addresses, and any other information pertaining to the 12.16employer's employees and the conditions of their employment as the commissioner deems 12.17necessary or appropriate. 12.18 The commissioner may require the records to be submitted by certified mail delivery 12.19or, if necessary, by personal delivery by the employer or a representative of the employer, 12.20as authorized by the employer in writing. 12.21 The commissioner may fine the employer up to $1,000 $10,000 for each failure to submit 12.22or deliver records as required by this section, and up to $5,000 for each repeated failure. 12.23This penalty is in addition to any penalties provided under section 177.32, subdivision 1. 12.24In determining the amount of a civil penalty under this subdivision, the appropriateness of 12.25such penalty to the size of the employer's business and the gravity of the violation shall be 12.26considered. 12.27Sec. 2. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read: 12.28 Subd. 4.Compliance orders.The commissioner may issue an order requiring an 12.29employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 12.30181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, 12Article 2 Sec. 2. REVISOR SS/HL 23-0141612/29/22 13.1subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.9445 to 181.9448, or 13.2with any rule promulgated under section 177.28. The commissioner shall issue an order 13.3requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. 13.4For purposes of this subdivision only, a violation is repeated if at any time during the two 13.5years that preceded the date of violation, the commissioner issued an order to the employer 13.6for violation of sections 177.41 to 177.435 and the order is final or the commissioner and 13.7the employer have entered into a settlement agreement that required the employer to pay 13.8back wages that were required by sections 177.41 to 177.435. The department shall serve 13.9the order upon the employer or the employer's authorized representative in person or by 13.10certified mail at the employer's place of business. An employer who wishes to contest the 13.11order must file written notice of objection to the order with the commissioner within 15 13.12calendar days after being served with the order. A contested case proceeding must then be 13.13held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being 13.14served with the order, the employer fails to file a written notice of objection with the 13.15commissioner, the order becomes a final order of the commissioner. 13.16Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read: 13.17 Subd. 7.Employer liability.If an employer is found by the commissioner to have 13.18violated a section identified in subdivision 4, or any rule adopted under section 177.28, and 13.19the commissioner issues an order to comply, the commissioner shall order the employer to 13.20cease and desist from engaging in the violative practice and to take such affirmative steps 13.21that in the judgment of the commissioner will effectuate the purposes of the section or rule 13.22violated. The commissioner shall order the employer to pay to the aggrieved parties back 13.23pay, gratuities, and compensatory damages, less any amount actually paid to the employee 13.24by the employer, and for an additional equal amount as liquidated damages. Any employer 13.25who is found by the commissioner to have repeatedly or willfully violated a section or 13.26sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 $10,000 13.27for each violation for each employee. In determining the amount of a civil penalty under 13.28this subdivision, the appropriateness of such penalty to the size of the employer's business 13.29and the gravity of the violation shall be considered. In addition, the commissioner may order 13.30the employer to reimburse the department and the attorney general for all appropriate 13.31litigation and hearing costs expended in preparation for and in conducting the contested 13.32case proceeding, unless payment of costs would impose extreme financial hardship on the 13.33employer. If the employer is able to establish extreme financial hardship, then the 13.34commissioner may order the employer to pay a percentage of the total costs that will not 13.35cause extreme financial hardship. Costs include but are not limited to the costs of services 13Article 2 Sec. 3. REVISOR SS/HL 23-0141612/29/22 14.1rendered by the attorney general, private attorneys if engaged by the department, 14.2administrative law judges, court reporters, and expert witnesses as well as the cost of 14.3transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's 14.4order from the date the order is signed by the commissioner until it is paid, at an annual rate 14.5provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish 14.6escrow accounts for purposes of distributing damages. 14.7 Sec. 4. [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT . 14.8 Subdivision 1.Definitions.The definitions in section 181.9445 apply to this section. 14.9 Subd. 2.Rulemaking authority.The commissioner may adopt rules to carry out the 14.10purposes of this section and sections 181.9445 to 181.9448. 14.11 Subd. 3.Individual remedies.In addition to any other remedies provided by law, a 14.12person injured by a violation of sections 181.9445 to 181.9448 may bring a civil action to 14.13recover general and special damages, along with costs, fees, and reasonable attorney fees, 14.14and may receive injunctive and other equitable relief as determined by a court. An action 14.15to recover damages under this subdivision must be commenced within three years of the 14.16violation of sections 181.9445 to 181.9448 that caused the injury to the employee. 14.17 Subd. 4.Grants to community organizations.The commissioner may make grants to 14.18community organizations for the purpose of outreach to and education for employees 14.19regarding their rights under sections 181.9445 to 181.9448. The community-based 14.20organizations must be selected based on their experience, capacity, and relationships in 14.21high-violation industries. The work under such a grant may include the creation and 14.22administration of a statewide worker hotline. 14.23 Subd. 5.Report to legislature.(a) The commissioner must submit an annual report to 14.24the legislature, including to the chairs and ranking minority members of any relevant 14.25legislative committee. The report must include but is not limited to: 14.26 (1) a list of all violations of sections 181.9445 to 181.9448, including the employer 14.27involved, and the nature of any violations; and 14.28 (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any 14.29patterns by employer, industry, or county. 14.30 (b) A report under this section must not include an employee's name or other identifying 14.31information, any health or medical information regarding an employee or an employee's 14.32family member, or any information pertaining to domestic abuse, sexual assault, or stalking 14.33of an employee or an employee's family member. 14Article 2 Sec. 4. REVISOR SS/HL 23-0141612/29/22 15.1 Subd. 6.Contract for labor or services.It is the responsibility of all employers to not 15.2enter into any contract or agreement for labor or services where the employer has any actual 15.3knowledge or knowledge arising from familiarity with the normal facts and circumstances 15.4of the business activity engaged in, or has any additional facts or information that, taken 15.5together, would make a reasonably prudent person undertake to inquire whether, taken 15.6together, the contractor is not complying or has failed to comply with this section. For 15.7purposes of this subdivision, "actual knowledge" means information obtained by the employer 15.8that the contractor has violated this section within the past two years and has failed to present 15.9the employer with credible evidence that such noncompliance has been cured going forward. 15.10 EFFECTIVE DATE.This section is effective 180 days after final enactment. 15.11 ARTICLE 3 15.12 EARNED SICK AND SAFE TIME APPROPRIATIONS 15.13Section 1. EARNED SICK AND SAFE TIME APPROPRIATIONS. 15.14 (a) $1,367,000 in fiscal year 2024 is appropriated from the general fund to the 15.15commissioner of labor and industry for enforcement and other duties regarding earned sick 15.16and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. 15.17In fiscal year 2025, the base is $2,018,000. In fiscal year 2026, the base is $1,708,000. 15.18 (b) $3,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 15.19of management and budget for printing costs associated with earned sick and safe time 15.20under Minnesota Statutes, sections 181.9445 to 181.9448. This is a onetime appropriation. 15.21 (c) $51,000 in fiscal year 2024 is appropriated from the general fund to the entities 15.22specified in paragraph (d) to offset the cost of earned sick and safe time leave required under 15.23this act of executive branch agencies, boards, and commissions. The base for fiscal year 15.242025 and beyond is $102,000. 15.25 (d) The commissioner of management and budget must determine an allocation of the 15.26amount appropriated in paragraph (c) for each executive branch state agency, board, and 15.27commission. Each allocation is directly appropriated to each of these entities as specified 15.28by the commissioner. 15.29 (e) $300,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 15.30of labor and industry for grants to community organizations under Minnesota Statutes, 15.31section 177.50, subdivision 4. In fiscal year 2025, the base is $300,000. In fiscal year 2026, 15.32the base is $0. 15Article 3 Section 1. REVISOR SS/HL 23-0141612/29/22 16.1 (f) $18,000 in fiscal year 2024 is appropriated from the general fund to the house of 16.2representatives to modify timecard and human resources systems as necessary to comply 16.3with this act. This is a onetime appropriation. 16.4 (g) $1,000 in fiscal year 2024 is appropriated from the general fund to the supreme court 16.5for purposes of this act. The base for this appropriation is $492,000 in fiscal year 2025 and 16.6$459,000 in fiscal year 2026. 16Article 3 Section 1. REVISOR SS/HL 23-0141612/29/22 181.9413 SICK LEAVE BENEFITS; CARE OF RELATIVES. (a) An employee may use personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's child, as defined in section 181.940, subdivision 4, adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent, for reasonable periods of time as the employee's attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee's own illness or injury. This section applies only to personal sick leave benefits payable to the employee from the employer's general assets. (b) An employee may use sick leave as allowed under this section for safety leave, whether or not the employee's employer allows use of sick leave for that purpose for such reasonable periods of time as may be necessary. Safety leave may be used for assistance to the employee or assistance to the relatives described in paragraph (a). For the purpose of this section, "safety leave" is leave for the purpose of providing or receiving assistance because of sexual assault, domestic abuse, or harassment or stalking. For the purpose of this paragraph: (1) "domestic abuse" has the meaning given in section 518B.01; (2) "sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453 or 609.352; and (3) "harass" and "stalking" have the meanings given in section 609.749. (c) An employer may limit the use of safety leave as described in paragraph (b) or personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent to no less than 160 hours in any 12-month period. This paragraph does not apply to absences due to the illness or injury of a child, as defined in section 181.940, subdivision 4. (d) For purposes of this section, "personal sick leave benefits" means time accrued and available to an employee to be used as a result of absence from work due to personal illness or injury, but does not include short-term or long-term disability or other salary continuation benefits. (e) For the purpose of this section, "child" includes a stepchild and a biological, adopted, and foster child. (f) For the purpose of this section, "grandchild" includes a step-grandchild, and a biological, adopted, and foster grandchild. (g) This section does not prevent an employer from providing greater sick leave benefits than are provided for under this section. (h) An employer shall not retaliate against an employee for requesting or obtaining a leave of absence under this section. 1R APPENDIX Repealed Minnesota Statutes: 23-01416