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; 181.9436; 181.944; 1.5 proposing coding for new law in Minnesota Statutes, chapters 177; 181; repealing 1.6 Minnesota Statutes 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 H0019-1HF19 FIRST ENGROSSMENT 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 Adoption of Report: Amended and re-referred to the Committee on Judiciary Finance and Civil Law01/18/2023 By motion, recalled and re-referred to the Committee on State and Local Government Finance and Policy 2.1 Sec. 2. Minnesota Statutes 2022, section 181.9436, is amended to read: 2.2 181.9436 POSTING OF LAW. 2.3 The Division of Labor Standards and Apprenticeship shall develop, with the assistance 2.4of interested business and community organizations, an educational poster stating employees' 2.5rights under sections 181.940 to 181.9436 181.9448. The department shall make the poster 2.6available, upon request, to employers for posting on the employer's premises. 2.7 Sec. 3. [181.9445] DEFINITIONS. 2.8 Subdivision 1.Definitions.For the purposes of section 177.50 and sections 181.9445 2.9to 181.9448, the terms defined in this section have the meanings given them. 2.10 Subd. 2.Commissioner."Commissioner" means the commissioner of labor and industry 2.11or authorized designee or representative. 2.12 Subd. 3.Domestic abuse."Domestic abuse" has the meaning given in section 518B.01. 2.13 Subd. 4.Earned sick and safe time."Earned sick and safe time" means leave, including 2.14paid time off and other paid leave systems, that is paid at the same hourly rate as an employee 2.15earns from employment that may be used for the same purposes and under the same 2.16conditions as provided under section 181.9447, but in no case shall this hourly rate be less 2.17than that provided under section 177.24 or an applicable local minimum wage. 2.18 Subd. 5.Employee."Employee" means any person who is employed by an employer, 2.19including temporary and part-time employees, who performs work for at least 80 hours in 2.20a year for that employer in Minnesota. Employee does not include an independent contractor. 2.21 Subd. 6.Employer."Employer" means a person who has one or more employees. 2.22Employer includes an individual, a corporation, a partnership, an association, a business 2.23trust, a nonprofit organization, a group of persons, the state of Minnesota, a county, town, 2.24city, school district, or other governmental subdivision. In the event that a temporary 2.25employee is supplied by a staffing agency, absent a contractual agreement stating otherwise, 2.26that individual shall be an employee of the staffing agency for all purposes of section 177.50 2.27and sections 181.9445 to 181.9448. Employer does not include the United States government. 2.28 Subd. 7.Family member."Family member" means: 2.29 (1) an employee's: 2.30 (i) child, foster child, adult child, legal ward, child for whom the employee is legal 2.31guardian, or child to whom the employee stands or stood in loco parentis; 2Article 1 Sec. 3. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 3.1 (ii) spouse or registered domestic partner; 3.2 (iii) sibling, stepsibling, or foster sibling; 3.3 (iv) biological, adoptive, or foster parent, stepparent, or a person who stood in loco 3.4parentis when the employee was a minor child; 3.5 (v) grandchild, foster grandchild, or stepgrandchild; 3.6 (vi) grandparent or stepgrandparent; 3.7 (vii) a child of a sibling of the employee; 3.8 (viii) a sibling of the parents of the employee; or 3.9 (ix) a child-in-law or sibling-in-law; 3.10 (2) any of the family members listed in clause (1) of a spouse or registered domestic 3.11partner; 3.12 (3) any other individual related by blood or whose close association with the employee 3.13is the equivalent of a family relationship; and 3.14 (4) up to one individual annually designated by the employee. 3.15 Subd. 8.Health care professional."Health care professional" means any person licensed, 3.16certified, or otherwise authorized under federal or state law to provide medical or emergency 3.17services, including doctors, physician assistants, nurses, advanced practice registered nurses, 3.18mental health professionals, and emergency room personnel. 3.19 Subd. 9.Prevailing wage rate."Prevailing wage rate" has the meaning given in section 3.20177.42 and as calculated by the Department of Labor and Industry. 3.21 Subd. 10.Sexual assault."Sexual assault" means an act that constitutes a violation 3.22under sections 609.342 to 609.3453 or 609.352. 3.23 Subd. 11.Stalking."Stalking" has the meaning given in section 609.749. 3.24 Subd. 12.Year."Year" means a regular and consecutive 12-month period, as determined 3.25by an employer and clearly communicated to each employee of that employer. 3.26 Sec. 4. [181.9446] ACCRUAL OF EARNED SICK AND SAFE TIME. 3.27 (a) An employee accrues a minimum of one hour of earned sick and safe time for every 3.2830 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. 3.29Employees may not accrue more than 48 hours of earned sick and safe time in a year unless 3.30the employer agrees to a higher amount. 3Article 1 Sec. 4. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 4.1 (b)(1) Except as provided in clause (2), employers must permit an employee to carry 4.2over accrued but unused sick and safe time into the following year. The total amount of 4.3accrued but unused earned sick and safe time for an employee must not exceed 80 hours at 4.4any time, unless an employer agrees to a higher amount. 4.5 (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the 4.6following year as provided under clause (1), an employer may pay an employee for accrued 4.7but unused sick and safe time at the end of a year at the same hourly rate as an employee 4.8earns from employment, provided that the employer provides an employee with the maximum 4.9annual accrual of earned sick and safe time for the year that meets or exceeds the 4.10requirements of this section that is available for the employee's immediate use at the 4.11beginning of the subsequent year. In no case shall this hourly rate be less than that provided 4.12under section 177.24 or an applicable local minimum wage. 4.13 (c) Employees who are exempt from overtime requirements under United States Code, 4.14title 29, section 213(a)(1), as amended through the effective date of this section, are deemed 4.15to work 40 hours in each workweek for purposes of accruing earned sick and safe time, 4.16except that an employee whose normal workweek is less than 40 hours will accrue earned 4.17sick and safe time based on the normal workweek. 4.18 (d) Earned sick and safe time under this section begins to accrue at the commencement 4.19of employment of the employee. 4.20 (e) Employees may use earned sick and safe time as it is accrued. 4.21 Sec. 5. [181.9447] USE OF EARNED SICK AND SAFE TIME. 4.22 Subdivision 1.Eligible use.An employee may use accrued earned sick and safe time 4.23for: 4.24 (1) an employee's: 4.25 (i) mental or physical illness, injury, or other health condition; 4.26 (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, 4.27or health condition; or 4.28 (iii) need for preventive medical or health care; 4.29 (2) care of a family member: 4.30 (i) with a mental or physical illness, injury, or other health condition; 4Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 5.1 (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, 5.2injury, or other health condition; or 5.3 (iii) who needs preventive medical or health care; 5.4 (3) absence due to domestic abuse, sexual assault, or stalking of the employee or 5.5employee's family member, provided the absence is to: 5.6 (i) seek medical attention related to physical or psychological injury or disability caused 5.7by domestic abuse, sexual assault, or stalking; 5.8 (ii) obtain services from a victim services organization; 5.9 (iii) obtain psychological or other counseling; 5.10 (iv) seek relocation or take steps to secure an existing home due to domestic abuse, 5.11sexual assault, or stalking; or 5.12 (v) seek legal advice or take legal action, including preparing for or participating in any 5.13civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, 5.14or stalking; 5.15 (4) closure of the employee's place of business due to weather or other public emergency 5.16or an employee's need to care for a family member whose school or place of care has been 5.17closed due to weather or other public emergency; 5.18 (5) the employee's inability to work or telework because the employee is: (i) prohibited 5.19from working by the employer due to health concerns related to the potential transmission 5.20of a communicable illness related to a public emergency; or (ii) seeking or awaiting the 5.21results of a diagnostic test for, or a medical diagnosis of, a communicable disease related 5.22to a public emergency and such employee has been exposed to a communicable disease or 5.23the employee's employer has requested a test or diagnosis; and 5.24 (6) when it has been determined by the health authorities having jurisdiction or by a 5.25health care professional that the presence of the employee or family member of the employee 5.26in the community would jeopardize the health of others because of the exposure of the 5.27employee or family member of the employee to a communicable disease, whether or not 5.28the employee or family member has actually contracted the communicable disease. 5.29 For the purposes of this subdivision, a public emergency shall include a declared 5.30emergency as defined in section 12.03 or a declared local emergency under section 12.29. 5.31 Subd. 2.Notice.An employer may require notice of the need for use of earned sick and 5.32safe time as provided in this paragraph. If the need for use is foreseeable, an employer may 5Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 6.1require advance notice of the intention to use earned sick and safe time but must not require 6.2more than seven days' advance notice. If the need is unforeseeable, an employer may require 6.3an employee to give notice of the need for earned sick and safe time as soon as practicable. 6.4An employer that requires notice of the need to use earned sick and safe time in accordance 6.5with this subdivision shall have a written policy containing reasonable procedures for 6.6employees to provide notice of the need to use earned sick and safe time, and shall provide 6.7a written copy of such policy to employees. If a copy of the written policy has not been 6.8provided to an employee, an employer shall not deny the use of earned sick and safe time 6.9to the employee on that basis. 6.10 Subd. 3.Documentation.(a) When an employee uses earned sick and safe time for 6.11more than three consecutive days, an employer may require reasonable documentation that 6.12the earned sick and safe time is covered by subdivision 1. 6.13 (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), 6.14reasonable documentation may include a signed statement by a health care professional 6.15indicating the need for use of earned sick and safe time. However, if the employee or 6.16employee's family member did not receive services from a health care professional, or if 6.17documentation cannot be obtained from a health care professional in a reasonable time or 6.18without added expense, then reasonable documentation for the purposes of this paragraph 6.19may include a written statement from the employee indicating that the employee is using 6.20or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause 6.21(1), (2), (5), or (6). 6.22 (c) For earned sick and safe time under subdivision 1, clause (3), an employer must 6.23accept a court record or documentation signed by a volunteer or employee of a victims 6.24services organization, an attorney, a police officer, or an antiviolence counselor as reasonable 6.25documentation. 6.26 (d) For earned sick and safe time to care for a family member under subdivision 1, clause 6.27(4), an employer must accept as reasonable documentation a written statement from the 6.28employee indicating that the employee is using or used earned sick and safe time for a 6.29qualifying purpose as reasonable documentation. 6.30 (e) An employer must not require disclosure of details relating to domestic abuse, sexual 6.31assault, or stalking or the details of an employee's or an employee's family member's medical 6.32condition as related to an employee's request to use earned sick and safe time under this 6.33section. 6Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 7.1 (f) Written statements by an employee may be written in the employee's first language 7.2and need not be notarized or in any particular format. 7.3 Subd. 4.Replacement worker.An employer may not require, as a condition of an 7.4employee using earned sick and safe time, that the employee seek or find a replacement 7.5worker to cover the hours the employee uses as earned sick and safe time. 7.6 Subd. 5.Increment of time used.Earned sick and safe time may be used in the smallest 7.7increment of time tracked by the employer's payroll system, provided such increment is not 7.8more than four hours. 7.9 Subd. 6.Retaliation prohibited.(a) An employer shall not discharge, discipline, penalize, 7.10interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against a 7.11person because the person has exercised or attempted to exercise rights protected under this 7.12act, including but not limited to because the person requested earned sick and safe time, 7.13used earned sick and safe time, requested a statement of accrued sick and safe time, informed 7.14any person of his or her potential rights under sections 181.9445 to 181.9448, made a 7.15complaint or filed an action to enforce a right to earned sick and safe time under this section, 7.16or is or was participating in any manner in an investigation, proceeding, or hearing under 7.17this chapter. 7.18 (b) It shall be unlawful for an employer's absence control policy or attendance point 7.19system to count earned sick and safe time taken under this act as an absence that may lead 7.20to or result in a retaliatory personnel action or any other adverse action. 7.21 (c) It shall be unlawful for an employer or any other person to report or threaten to report 7.22the actual or suspected citizenship or immigration status of a person or their family member 7.23to a federal, state, or local agency for exercising or attempting to exercise any right protected 7.24under this act. 7.25 (d) A person need not explicitly refer to this act or the rights enumerated herein to be 7.26protected from retaliatory personnel actions. 7.27 Subd. 7.Pay and benefits.(a) During any use of earned sick and safe time, the employer 7.28must maintain coverage under any group insurance policy, group subscriber contract, or 7.29health care plan for the employee and any dependents, as if the employee was not using 7.30earned sick and safe time, provided, however, that the employee must continue to pay any 7.31employee share of the cost of such benefits. 7.32 (b) An employee returning from a leave under this section is entitled to return to 7.33employment at the same rate of pay the employee had been receiving when the leave 7Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 8.1commenced, plus any automatic adjustments in the employee's pay scale that occurred 8.2during the leave period. The employee returning from a leave is entitled to retain all accrued 8.3preleave benefits of employment and seniority as if there had been no interruption in service, 8.4provided that nothing under this section prevents the accrual of benefits or seniority during 8.5the leave pursuant to a collective bargaining or other agreement between the employer and 8.6employees. 8.7 Subd. 8.Part-time return from leave.An employee, by agreement with the employer, 8.8may return to work part time during the leave period without forfeiting the right to return 8.9to employment at the end of the leave, as provided under this section. 8.10 Subd. 9.Notice and posting by employer.(a) Employers must give notice to all 8.11employees that they are entitled to earned sick and safe time, including the amount of earned 8.12sick and safe time, the accrual year for the employee, the terms of its use under this section, 8.13and a copy of the written policy for providing notice as provided under subdivision 2; that 8.14retaliatory personnel actions against employees who request or use earned sick and safe 8.15time are prohibited; and that each employee has the right to file a complaint or bring a civil 8.16action if earned sick and safe time is denied by the employer or the employee is retaliated 8.17against for requesting or using earned sick and safe time. 8.18 (b) Employers must supply employees with a notice in English and the primary language 8.19of the employee, as identified by the employee, that contains the information required in 8.20paragraph (a) at commencement of employment or the effective date of this section, 8.21whichever is later. 8.22 (c) The means used by the employer must be at least as effective as the following options 8.23for providing notice: 8.24 (1) posting a copy of the notice at each location where employees perform work and 8.25where the notice must be readily observed and easily reviewed by all employees performing 8.26work; 8.27 (2) providing a paper or electronic copy of the notice to employees; or 8.28 (3) a conspicuous posting in a web-based or app-based platform through which an 8.29employee performs work. 8.30The notice must contain all information required under paragraph (a). 8.31 (d) An employer that provides an employee handbook to its employees must include in 8.32the handbook notice of employee rights and remedies under this section. 8Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 9.1 Subd. 10.Required statement to employee.(a) Upon request of the employee, the 9.2employer must provide, in writing or electronically, current information stating the 9.3employee's amount of: 9.4 (1) earned sick and safe time available to the employee; and 9.5 (2) used earned sick and safe time. 9.6 (b) Employers may choose a reasonable system for providing the information in paragraph 9.7(a), including but not limited to listing information on each pay stub or developing an online 9.8system where employees can access their own information. 9.9 Subd. 11.Employer records.(a) Employers shall retain accurate records documenting 9.10hours worked by employees and earned sick and safe time taken and comply with all 9.11requirements under section 177.30. 9.12 (b) An employer must allow an employee to inspect records required by this section and 9.13relating to that employee at a reasonable time and place. 9.14 Subd. 12.Confidentiality and nondisclosure.(a) If, in conjunction with this section, 9.15an employer possesses: 9.16 (1) health or medical information regarding an employee or an employee's family 9.17member; 9.18 (2) information pertaining to domestic abuse, sexual assault, or stalking; 9.19 (3) information that the employee has requested or obtained leave under this section; or 9.20 (4) any written or oral statement, documentation, record, or corroborating evidence 9.21provided by the employee or an employee's family member, the employer must treat such 9.22information as confidential. 9.23Information given by an employee may only be disclosed by an employer if the disclosure 9.24is requested or consented to by the employee, when ordered by a court or administrative 9.25agency, or when otherwise required by federal or state law. 9.26 (b) Records and documents relating to medical certifications, recertifications, or medical 9.27histories of employees or family members of employees created for purposes of section 9.28177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records 9.29separate from the usual personnel files. At the request of the employee, the employer must 9.30destroy or return the records required by sections 181.9445 to 181.9448 that are older than 9.31three years prior to the current calendar year. 9Article 1 Sec. 5. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 10.1 (c) Employers may not discriminate against any employee based on records created for 10.2the purposes of section 177.50 or sections 181.9445 to 181.9448. 10.3 Sec. 6. [181.9448] EFFECT ON OTHER LAW OR POLICY. 10.4 Subdivision 1.No effect on more generous sick and safe time policies.(a) Nothing 10.5in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting 10.6or retaining earned sick and safe time policies that meet or exceed, and do not otherwise 10.7conflict with, the minimum standards and requirements provided in sections 181.9445 to 10.8181.9448. 10.9 (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of 10.10parties to a collective bargaining agreement to bargain and agree with respect to earned sick 10.11and safe time policies or to diminish the obligation of an employer to comply with any 10.12contract, collective bargaining agreement, or any employment benefit program or plan that 10.13meets or exceeds, and does not otherwise conflict with, the minimum standards and 10.14requirements provided in this section. 10.15 (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or 10.16otherwise affect the applicability of any other law, regulation, requirement, policy, or 10.17standard that provides for a greater amount, accrual, or use by employees of paid sick and 10.18safe time or that extends other protections to employees. 10.19 (d) Employers who provide earned sick and safe time to their employees under a paid 10.20time off policy or other paid leave policy that may be used for the same purposes and under 10.21the same conditions as earned sick and safe time, and that meets or exceeds, and does not 10.22otherwise conflict with, the minimum standards and requirements provided in sections 10.23181.9445 to 181.9448 are not required to provide additional earned sick and safe time. 10.24 (e) An employer may opt to satisfy the requirements of sections 181.9445 to 181.9448 10.25for construction industry employees by: 10.26 (1) paying at least the prevailing wage rate as defined by section 177.42 and as calculated 10.27by the Department of Labor and Industry; or 10.28 (2) paying at least the required rate established in a registered apprenticeship agreement 10.29for apprentices registered with the Department of Labor and Industry. 10.30An employer electing this option is deemed to be in compliance with sections 181.9445 to 10.31181.9448 for construction industry employees who receive either at least the prevailing 10.32wage rate or the rate required in the applicable apprenticeship agreement regardless of 10.33whether the employees are working on private or public projects. 10Article 1 Sec. 6. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 11.1 (f) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy 11.2whereby employees may donate unused accrued sick and safe time to another employee. 11.3 (g) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and 11.4safe time to an employee before accrual by the employee. 11.5 Subd. 2.Termination; separation; transfer.Sections 181.9445 to 181.9448 do not 11.6require financial or other reimbursement to an employee from an employer upon the 11.7employee's termination, resignation, retirement, or other separation from employment for 11.8accrued earned sick and safe time that has not been used. If an employee is transferred to 11.9a separate division, entity, or location, but remains employed by the same employer, the 11.10employee is entitled to all earned sick and safe time accrued at the prior division, entity, or 11.11location and is entitled to use all earned sick and safe time as provided in sections 181.9445 11.12to 181.9448. When there is a separation from employment and the employee is rehired 11.13within 180 days of separation by the same employer, previously accrued earned sick and 11.14safe time that had not been used must be reinstated. An employee is entitled to use accrued 11.15earned sick and safe time and accrue additional earned sick and safe time at the 11.16commencement of reemployment. 11.17 Subd. 3.Employer succession.(a) When a different employer succeeds or takes the 11.18place of an existing employer, all employees of the original employer who remain employed 11.19by the successor employer are entitled to all earned sick and safe time accrued but not used 11.20when employed by the original employer, and are entitled to use all earned sick and safe 11.21time previously accrued but not used. 11.22 (b) If, at the time of transfer of the business, employees are terminated by the original 11.23employer and hired within 30 days by the successor employer following the transfer, those 11.24employees are entitled to all earned sick and safe time accrued but not used when employed 11.25by the original employer, and are entitled to use all earned sick and safe time previously 11.26accrued but not used. 11.27Sec. 7. SEVERABILITY. 11.28 If any provision of this act or application thereof to any person or circumstance is judged 11.29invalid, the invalidity shall not affect other provisions or applications of the act which can 11.30be given effect without the invalid provision or application, and to this end the provisions 11.31of this act are declared severable. 11Article 1 Sec. 7. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 12.1 Sec. 8. REPEALER. 12.2 Minnesota Statutes 2022, section 181.9413, is repealed. 12.3 Sec. 9. EFFECTIVE DATE. 12.4 This article is effective 180 days following final enactment. 12.5 ARTICLE 2 12.6 EARNED SICK AND SAFE TIME ENFORCEMENT 12.7 Section 1. Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read: 12.8 Subd. 2.Submission of records; penalty.The commissioner may require the employer 12.9of employees working in the state to submit to the commissioner photocopies, certified 12.10copies, or, if necessary, the originals of employment records which the commissioner deems 12.11necessary or appropriate. The records which may be required include full and correct 12.12statements in writing, including sworn statements by the employer, containing information 12.13relating to wages, hours, names, addresses, and any other information pertaining to the 12.14employer's employees and the conditions of their employment as the commissioner deems 12.15necessary or appropriate. 12.16 The commissioner may require the records to be submitted by certified mail delivery 12.17or, if necessary, by personal delivery by the employer or a representative of the employer, 12.18as authorized by the employer in writing. 12.19 The commissioner may fine the employer up to $1,000 $10,000 for each failure to submit 12.20or deliver records as required by this section, and up to $5,000 for each repeated failure. 12.21This penalty is in addition to any penalties provided under section 177.32, subdivision 1. 12.22In determining the amount of a civil penalty under this subdivision, the appropriateness of 12.23such penalty to the size of the employer's business and the gravity of the violation shall be 12.24considered. 12.25Sec. 2. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read: 12.26 Subd. 4.Compliance orders.The commissioner may issue an order requiring an 12.27employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 12.28181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, 12.29subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.9445 to 181.9448, or 12.30with any rule promulgated under section 177.28. The commissioner shall issue an order 12.31requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. 12Article 2 Sec. 2. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 13.1For purposes of this subdivision only, a violation is repeated if at any time during the two 13.2years that preceded the date of violation, the commissioner issued an order to the employer 13.3for violation of sections 177.41 to 177.435 and the order is final or the commissioner and 13.4the employer have entered into a settlement agreement that required the employer to pay 13.5back wages that were required by sections 177.41 to 177.435. The department shall serve 13.6the order upon the employer or the employer's authorized representative in person or by 13.7certified mail at the employer's place of business. An employer who wishes to contest the 13.8order must file written notice of objection to the order with the commissioner within 15 13.9calendar days after being served with the order. A contested case proceeding must then be 13.10held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being 13.11served with the order, the employer fails to file a written notice of objection with the 13.12commissioner, the order becomes a final order of the commissioner. 13.13Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read: 13.14 Subd. 7.Employer liability.If an employer is found by the commissioner to have 13.15violated a section identified in subdivision 4, or any rule adopted under section 177.28, and 13.16the commissioner issues an order to comply, the commissioner shall order the employer to 13.17cease and desist from engaging in the violative practice and to take such affirmative steps 13.18that in the judgment of the commissioner will effectuate the purposes of the section or rule 13.19violated. The commissioner shall order the employer to pay to the aggrieved parties back 13.20pay, gratuities, and compensatory damages, less any amount actually paid to the employee 13.21by the employer, and for an additional equal amount as liquidated damages. Any employer 13.22who is found by the commissioner to have repeatedly or willfully violated a section or 13.23sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 $10,000 13.24for each violation for each employee. In determining the amount of a civil penalty under 13.25this subdivision, the appropriateness of such penalty to the size of the employer's business 13.26and the gravity of the violation shall be considered. In addition, the commissioner may order 13.27the employer to reimburse the department and the attorney general for all appropriate 13.28litigation and hearing costs expended in preparation for and in conducting the contested 13.29case proceeding, unless payment of costs would impose extreme financial hardship on the 13.30employer. If the employer is able to establish extreme financial hardship, then the 13.31commissioner may order the employer to pay a percentage of the total costs that will not 13.32cause extreme financial hardship. Costs include but are not limited to the costs of services 13.33rendered by the attorney general, private attorneys if engaged by the department, 13.34administrative law judges, court reporters, and expert witnesses as well as the cost of 13.35transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's 13Article 2 Sec. 3. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 14.1order from the date the order is signed by the commissioner until it is paid, at an annual rate 14.2provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish 14.3escrow accounts for purposes of distributing damages. 14.4 Sec. 4. [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT . 14.5 Subdivision 1.Definitions.The definitions in section 181.9445 apply to this section. 14.6 Subd. 2.Rulemaking authority.The commissioner may adopt rules to carry out the 14.7purposes of this section and sections 181.9445 to 181.9448. 14.8 Subd. 3.Individual remedies.An action to recover damages under section 181.944 for 14.9violation of sections 181.9445 to 181.9448 must be commenced within three years of the 14.10violation that caused the injury to the employee. 14.11 Subd. 4.Grants to community organizations.The commissioner may make grants to 14.12community organizations for the purpose of outreach to and education for employees 14.13regarding their rights under sections 181.9445 to 181.9448. The community-based 14.14organizations must be selected based on their experience, capacity, and relationships in 14.15high-violation industries. The work under such a grant may include the creation and 14.16administration of a statewide worker hotline. 14.17 Subd. 5.Report to legislature.(a) The commissioner must submit an annual report to 14.18the legislature, including to the chairs and ranking minority members of any relevant 14.19legislative committee. The report must include but is not limited to: 14.20 (1) a list of all violations of sections 181.9445 to 181.9448, including the employer 14.21involved, and the nature of any violations; and 14.22 (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any 14.23patterns by employer, industry, or county. 14.24 (b) A report under this section must not include an employee's name or other identifying 14.25information, any health or medical information regarding an employee or an employee's 14.26family member, or any information pertaining to domestic abuse, sexual assault, or stalking 14.27of an employee or an employee's family member. 14.28 Subd. 6.Contract for labor or services.It is the responsibility of all employers to not 14.29enter into any contract or agreement for labor or services where the employer has any actual 14.30knowledge or knowledge arising from familiarity with the normal facts and circumstances 14.31of the business activity engaged in, or has any additional facts or information that, taken 14.32together, would make a reasonably prudent person undertake to inquire whether, taken 14Article 2 Sec. 4. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 15.1together, the contractor is not complying or has failed to comply with this section. For 15.2purposes of this subdivision, "actual knowledge" means information obtained by the employer 15.3that the contractor has violated this section within the past two years and has failed to present 15.4the employer with credible evidence that such noncompliance has been cured going forward. 15.5 EFFECTIVE DATE.This section is effective 180 days after final enactment. 15.6 Sec. 5. Minnesota Statutes 2022, section 181.944, is amended to read: 15.7 181.944 INDIVIDUAL REMEDIES. 15.8 In addition to any other remedies provided by law, a person injured by a violation of 15.9sections 181.172, paragraph (a) or (d), and 181.939 to 181.943, and 181.9445 to 181.9448 15.10may bring a civil action to recover any and all damages recoverable at law, together with 15.11costs and disbursements, including reasonable attorney's fees, and may receive injunctive 15.12and other equitable relief as determined by a court. 15.13 ARTICLE 3 15.14 EARNED SICK AND SAFE TIME APPROPRIATIONS 15.15Section 1. EARNED SICK AND SAFE TIME APPROPRIATIONS. 15.16 (a) $1,367,000 in fiscal year 2024 is appropriated from the general fund to the 15.17commissioner of labor and industry for enforcement and other duties regarding earned sick 15.18and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. 15.19In fiscal year 2025, the base is $2,018,000. In fiscal year 2026, the base is $1,708,000. 15.20 (b) $3,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 15.21of management and budget for printing costs associated with earned sick and safe time 15.22under Minnesota Statutes, sections 181.9445 to 181.9448. This is a onetime appropriation. 15.23 (c) $51,000 in fiscal year 2024 is appropriated from the general fund to the entities 15.24specified in paragraph (d) to offset the cost of earned sick and safe time leave required under 15.25this act of executive branch agencies, boards, and commissions. The base for fiscal year 15.262025 and beyond is $102,000. 15.27 (d) The commissioner of management and budget must determine an allocation of the 15.28amount appropriated in paragraph (c) for each executive branch state agency, board, and 15.29commission. Each allocation is directly appropriated to each of these entities as specified 15.30by the commissioner. 15Article 3 Section 1. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 16.1 (e) $300,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 16.2of labor and industry for grants to community organizations under Minnesota Statutes, 16.3section 177.50, subdivision 4. In fiscal year 2025, the base is $300,000. In fiscal year 2026, 16.4the base is $0. 16.5 (f) $18,000 in fiscal year 2024 is appropriated from the general fund to the house of 16.6representatives to modify timecard and human resources systems as necessary to comply 16.7with this act. This is a onetime appropriation. 16.8 (g) $1,000 in fiscal year 2024 is appropriated from the general fund to the supreme court 16.9for purposes of this act. The base for this appropriation is $492,000 in fiscal year 2025 and 16.10$459,000 in fiscal year 2026. 16Article 3 Section 1. REVISOR SS H0019-1HF19 FIRST ENGROSSMENT 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: H0019-1