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; adding a district court judge to the Ninth Judicial District; 1.4 appropriating money; amending Minnesota Statutes 2022, sections 2.722, 1.5 subdivision 1; 177.27, subdivisions 2, 4, 7; 181.942, subdivision 1; 181.9436; 1.6 181.944; proposing coding for new law in Minnesota Statutes, chapters 177; 181; 1.7 repealing Minnesota Statutes 2022, section 181.9413. 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 ARTICLE 1 1.10 EARNED SICK AND SAFE TIME 1.11 Section 1. Minnesota Statutes 2022, section 181.942, subdivision 1, is amended to read: 1.12 Subdivision 1.Comparable position.(a) An employee returning from a leave of absence 1.13under section 181.941 is entitled to return to employment in the employee's former position 1.14or in a position of comparable duties, number of hours, and pay. An employee returning 1.15from a leave of absence longer than one month must notify a supervisor at least two weeks 1.16prior to return from leave. An employee returning from a leave under section 181.9412 or 1.17181.9413 sections 181.9445 to 181.9448 is entitled to return to employment in the employee's 1.18former position. 1.19 (b) If, during a leave under sections 181.940 to 181.944, the employer experiences a 1.20layoff and the employee would have lost a position had the employee not been on leave, 1.21pursuant to the good faith operation of a bona fide layoff and recall system, including a 1.22system under a collective bargaining agreement, the employee is not entitled to reinstatement 1.23in the former or comparable position. In such circumstances, the employee retains all rights 1Article 1 Section 1. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 39 Printed Page No.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 Adoption of Report: Re-referred to the Committee on Judiciary Finance and Civil Law01/23/2023 Adoption of Report: Amended and re-referred to the Committee on Ways and Means01/26/2023 Adoption of Report: Placed on the General Register as Amended02/01/2023 Read for the Second Time 2.1under the layoff and recall system, including a system under a collective bargaining 2.2agreement, as if the employee had not taken the leave. 2.3 Sec. 2. Minnesota Statutes 2022, section 181.9436, is amended to read: 2.4 181.9436 POSTING OF LAW. 2.5 The Division of Labor Standards and Apprenticeship shall develop, with the assistance 2.6of interested business and community organizations, an educational poster stating employees' 2.7rights under sections 181.940 to 181.9436 181.9448. The department shall make the poster 2.8available, upon request, to employers for posting on the employer's premises. 2.9 Sec. 3. [181.9445] DEFINITIONS. 2.10 Subdivision 1.Definitions.For the purposes of section 177.50 and sections 181.9445 2.11to 181.9448, the terms defined in this section have the meanings given them. 2.12 Subd. 2.Commissioner."Commissioner" means the commissioner of labor and industry 2.13or authorized designee or representative. 2.14 Subd. 3.Domestic abuse."Domestic abuse" has the meaning given in section 518B.01. 2.15 Subd. 4.Earned sick and safe time."Earned sick and safe time" means leave, including 2.16paid time off and other paid leave systems, that is paid at the same hourly rate as an employee 2.17earns from employment that may be used for the same purposes and under the same 2.18conditions as provided under section 181.9447, but in no case shall this hourly rate be less 2.19than that provided under section 177.24 or an applicable local minimum wage. 2.20 Subd. 5.Employee."Employee" means any person who is employed by an employer, 2.21including temporary and part-time employees, who performs work for at least 80 hours in 2.22a year for that employer in Minnesota. Employee does not include an independent contractor. 2.23 Subd. 6.Employer."Employer" means a person who has one or more employees. 2.24Employer includes an individual, a corporation, a partnership, an association, a business 2.25trust, a nonprofit organization, a group of persons, the state of Minnesota, a county, town, 2.26city, school district, or other governmental subdivision. In the case of an employee leasing 2.27company or professional employer organization, the taxpaying employer, as described in 2.28section 268.046, subdivision 1, remains the employer. In the case of an individual provider 2.29within the meaning of section 256B.0711, subdivision 1, paragraph (d), the employer includes 2.30any participant within the meaning of section 256B.0711, subdivision 1, paragraph (e), or 2.31participant's representative within the meaning of section 256B.0711, subdivision 1, 2.32paragraph (f). In the event that a temporary employee is supplied by a staffing agency, 2Article 1 Sec. 3. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 3.1absent a contractual agreement stating otherwise, that individual shall be an employee of 3.2the staffing agency for all purposes of section 177.50 and sections 181.9445 to 181.9448. 3.3Employer does not include the United States government. 3.4 Subd. 7.Family member."Family member" means: 3.5 (1) an employee's: 3.6 (i) child, foster child, adult child, legal ward, child for whom the employee is legal 3.7guardian, or child to whom the employee stands or stood in loco parentis; 3.8 (ii) spouse or registered domestic partner; 3.9 (iii) sibling, stepsibling, or foster sibling; 3.10 (iv) biological, adoptive, or foster parent, stepparent, or a person who stood in loco 3.11parentis when the employee was a minor child; 3.12 (v) grandchild, foster grandchild, or stepgrandchild; 3.13 (vi) grandparent or stepgrandparent; 3.14 (vii) a child of a sibling of the employee; 3.15 (viii) a sibling of the parents of the employee; or 3.16 (ix) a child-in-law or sibling-in-law; 3.17 (2) any of the family members listed in clause (1) of a spouse or registered domestic 3.18partner; 3.19 (3) any other individual related by blood or whose close association with the employee 3.20is the equivalent of a family relationship; and 3.21 (4) up to one individual annually designated by the employee. 3.22 Subd. 8.Health care professional."Health care professional" means any person licensed, 3.23certified, or otherwise authorized under federal or state law to provide medical or emergency 3.24services, including doctors, physician assistants, nurses, advanced practice registered nurses, 3.25mental health professionals, and emergency room personnel. 3.26 Subd. 9.Prevailing wage rate."Prevailing wage rate" has the meaning given in section 3.27177.42 and as calculated by the Department of Labor and Industry. 3.28 Subd. 10.Sexual assault."Sexual assault" means an act that constitutes a violation 3.29under sections 609.342 to 609.3453 or 609.352. 3.30 Subd. 11.Stalking."Stalking" has the meaning given in section 609.749. 3Article 1 Sec. 3. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 4.1 Subd. 12.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. 4. [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. 4.12 (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the 4.13following year as provided under clause (1), an employer may provide an employee with 4.14earned sick and safe time for the year that meets or exceeds the requirements of this section 4.15that is available for the employee's immediate use at the beginning of the subsequent year 4.16as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and 4.17safe time at the end of a year at the same hourly rate as an employee earns from employment; 4.18or (ii) 80 hours, if an employer does not pay an employee for accrued but unused sick and 4.19safe time at the end of a year at the same or greater hourly rate as an employee earns from 4.20employment. 4.21 (c) Employees who are exempt from overtime requirements under United States Code, 4.22title 29, section 213(a)(1), as amended through the effective date of this section, are deemed 4.23to work 40 hours in each workweek for purposes of accruing earned sick and safe time, 4.24except that an employee whose normal workweek is less than 40 hours will accrue earned 4.25sick and safe time based on the normal workweek. 4.26 (d) Earned sick and safe time under this section begins to accrue at the commencement 4.27of employment of the employee. 4.28 (e) Employees may use earned sick and safe time as it is accrued. 4.29 Sec. 5. [181.9447] USE OF EARNED SICK AND SAFE TIME. 4.30 Subdivision 1.Eligible use.An employee may use accrued earned sick and safe time 4.31for: 4.32 (1) an employee's: 4Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 5.1 (i) mental or physical illness, injury, or other health condition; 5.2 (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, 5.3or health condition; or 5.4 (iii) need for preventive medical or health care; 5.5 (2) care of a family member: 5.6 (i) with a mental or physical illness, injury, or other health condition; 5.7 (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, 5.8injury, or other health condition; or 5.9 (iii) who needs preventive medical or health care; 5.10 (3) absence due to domestic abuse, sexual assault, or stalking of the employee or 5.11employee's family member, provided the absence is to: 5.12 (i) seek medical attention related to physical or psychological injury or disability caused 5.13by domestic abuse, sexual assault, or stalking; 5.14 (ii) obtain services from a victim services organization; 5.15 (iii) obtain psychological or other counseling; 5.16 (iv) seek relocation or take steps to secure an existing home due to domestic abuse, 5.17sexual assault, or stalking; or 5.18 (v) seek legal advice or take legal action, including preparing for or participating in any 5.19civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, 5.20or stalking; 5.21 (4) closure of the employee's place of business due to weather or other public emergency 5.22or an employee's need to care for a family member whose school or place of care has been 5.23closed due to weather or other public emergency; 5.24 (5) the employee's inability to work or telework because the employee is: (i) prohibited 5.25from working by the employer due to health concerns related to the potential transmission 5.26of a communicable illness related to a public emergency; or (ii) seeking or awaiting the 5.27results of a diagnostic test for, or a medical diagnosis of, a communicable disease related 5.28to a public emergency and such employee has been exposed to a communicable disease or 5.29the employee's employer has requested a test or diagnosis; and 5.30 (6) when it has been determined by the health authorities having jurisdiction or by a 5.31health care professional that the presence of the employee or family member of the employee 5Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 6.1in the community would jeopardize the health of others because of the exposure of the 6.2employee or family member of the employee to a communicable disease, whether or not 6.3the employee or family member has actually contracted the communicable disease. 6.4 For the purposes of this subdivision, a public emergency shall include a declared 6.5emergency as defined in section 12.03 or a declared local emergency under section 12.29. 6.6 Subd. 2.Notice.An employer may require notice of the need for use of earned sick and 6.7safe time as provided in this paragraph. If the need for use is foreseeable, an employer may 6.8require advance notice of the intention to use earned sick and safe time but must not require 6.9more than seven days' advance notice. If the need is unforeseeable, an employer may require 6.10an employee to give notice of the need for earned sick and safe time as soon as practicable. 6.11An employer that requires notice of the need to use earned sick and safe time in accordance 6.12with this subdivision shall have a written policy containing reasonable procedures for 6.13employees to provide notice of the need to use earned sick and safe time, and shall provide 6.14a written copy of such policy to employees. If a copy of the written policy has not been 6.15provided to an employee, an employer shall not deny the use of earned sick and safe time 6.16to the employee on that basis. 6.17 Subd. 3.Documentation.(a) When an employee uses earned sick and safe time for 6.18more than three consecutive days, an employer may require reasonable documentation that 6.19the earned sick and safe time is covered by subdivision 1. 6.20 (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), 6.21reasonable documentation may include a signed statement by a health care professional 6.22indicating the need for use of earned sick and safe time. However, if the employee or 6.23employee's family member did not receive services from a health care professional, or if 6.24documentation cannot be obtained from a health care professional in a reasonable time or 6.25without added expense, then reasonable documentation for the purposes of this paragraph 6.26may include a written statement from the employee indicating that the employee is using 6.27or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause 6.28(1), (2), (5), or (6). 6.29 (c) For earned sick and safe time under subdivision 1, clause (3), an employer must 6.30accept a court record or documentation signed by a volunteer or employee of a victims 6.31services organization, an attorney, a police officer, or an antiviolence counselor as reasonable 6.32documentation. 6.33 (d) For earned sick and safe time to care for a family member under subdivision 1, clause 6.34(4), an employer must accept as reasonable documentation a written statement from the 6Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 7.1employee indicating that the employee is using or used earned sick and safe time for a 7.2qualifying purpose as reasonable documentation. 7.3 (e) An employer must not require disclosure of details relating to domestic abuse, sexual 7.4assault, or stalking or the details of an employee's or an employee's family member's medical 7.5condition as related to an employee's request to use earned sick and safe time under this 7.6section. 7.7 (f) Written statements by an employee may be written in the employee's first language 7.8and need not be notarized or in any particular format. 7.9 Subd. 4.Replacement worker.An employer may not require, as a condition of an 7.10employee using earned sick and safe time, that the employee seek or find a replacement 7.11worker to cover the hours the employee uses as earned sick and safe time. 7.12 Subd. 5.Increment of time used.Earned sick and safe time may be used in the smallest 7.13increment of time tracked by the employer's payroll system, provided such increment is not 7.14more than four hours. 7.15 Subd. 6.Retaliation prohibited.(a) An employer shall not discharge, discipline, penalize, 7.16interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against a 7.17person because the person has exercised or attempted to exercise rights protected under this 7.18act, including but not limited to because the person requested earned sick and safe time, 7.19used earned sick and safe time, requested a statement of accrued sick and safe time, informed 7.20any person of his or her potential rights under sections 181.9445 to 181.9448, made a 7.21complaint or filed an action to enforce a right to earned sick and safe time under this section, 7.22or is or was participating in any manner in an investigation, proceeding, or hearing under 7.23this chapter. 7.24 (b) It shall be unlawful for an employer's absence control policy or attendance point 7.25system to count earned sick and safe time taken under this act as an absence that may lead 7.26to or result in a retaliatory personnel action or any other adverse action. 7.27 (c) It shall be unlawful for an employer or any other person to report or threaten to report 7.28the actual or suspected citizenship or immigration status of a person or their family member 7.29to a federal, state, or local agency for exercising or attempting to exercise any right protected 7.30under this act. 7.31 (d) A person need not explicitly refer to this act or the rights enumerated herein to be 7.32protected from retaliatory personnel actions. 7Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 8.1 Subd. 7.Pay and benefits.(a) During any use of earned sick and safe time, the employer 8.2must maintain coverage under any group insurance policy, group subscriber contract, or 8.3health care plan for the employee and any dependents, as if the employee was not using 8.4earned sick and safe time, provided, however, that the employee must continue to pay any 8.5employee share of the cost of such benefits. 8.6 (b) An employee returning from a leave under this section is entitled to return to 8.7employment at the same rate of pay the employee had been receiving when the leave 8.8commenced, plus any automatic adjustments in the employee's pay scale that occurred 8.9during the leave period. The employee returning from a leave is entitled to retain all accrued 8.10preleave benefits of employment and seniority as if there had been no interruption in service, 8.11provided that nothing under this section prevents the accrual of benefits or seniority during 8.12the leave pursuant to a collective bargaining or other agreement between the employer and 8.13employees. 8.14 Subd. 8.Part-time return from leave.An employee, by agreement with the employer, 8.15may return to work part time during the leave period without forfeiting the right to return 8.16to employment at the end of the leave, as provided under this section. 8.17 Subd. 9.Notice and posting by employer.(a) Employers must give notice to all 8.18employees that they are entitled to earned sick and safe time, including the amount of earned 8.19sick and safe time, the accrual year for the employee, the terms of its use under this section, 8.20and a copy of the written policy for providing notice as provided under subdivision 2; that 8.21retaliatory personnel actions against employees who request or use earned sick and safe 8.22time are prohibited; and that each employee has the right to file a complaint or bring a civil 8.23action if earned sick and safe time is denied by the employer or the employee is retaliated 8.24against for requesting or using earned sick and safe time. 8.25 (b) Employers must supply employees with a notice in English and the primary language 8.26of the employee, as identified by the employee, that contains the information required in 8.27paragraph (a) at commencement of employment or the effective date of this section, 8.28whichever is later. 8.29 (c) The means used by the employer must be at least as effective as the following options 8.30for providing notice: 8.31 (1) posting a copy of the notice at each location where employees perform work and 8.32where the notice must be readily observed and easily reviewed by all employees performing 8.33work; 8.34 (2) providing a paper or electronic copy of the notice to employees; or 8Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 9.1 (3) a conspicuous posting in a web-based or app-based platform through which an 9.2employee performs work. 9.3The notice must contain all information required under paragraph (a). 9.4 (d) An employer that provides an employee handbook to its employees must include in 9.5the handbook notice of employee rights and remedies under this section. 9.6 Subd. 10.Required statement to employee.(a) Upon request of the employee, the 9.7employer must provide, in writing or electronically, current information stating the 9.8employee's amount of: 9.9 (1) earned sick and safe time available to the employee; and 9.10 (2) used earned sick and safe time. 9.11 (b) Employers may choose a reasonable system for providing the information in paragraph 9.12(a), including but not limited to listing information on each pay stub or developing an online 9.13system where employees can access their own information. 9.14 Subd. 11.Employer records.(a) Employers shall retain accurate records documenting 9.15hours worked by employees and earned sick and safe time taken and comply with all 9.16requirements under section 177.30. 9.17 (b) An employer must allow an employee to inspect records required by this section and 9.18relating to that employee at a reasonable time and place. 9.19 Subd. 12.Confidentiality and nondisclosure.(a) If, in conjunction with this section, 9.20an employer possesses: 9.21 (1) health or medical information regarding an employee or an employee's family 9.22member; 9.23 (2) information pertaining to domestic abuse, sexual assault, or stalking; 9.24 (3) information that the employee has requested or obtained leave under this section; or 9.25 (4) any written or oral statement, documentation, record, or corroborating evidence 9.26provided by the employee or an employee's family member, the employer must treat such 9.27information as confidential. 9.28Information given by an employee may only be disclosed by an employer if the disclosure 9.29is requested or consented to by the employee, when ordered by a court or administrative 9.30agency, or when otherwise required by federal or state law. 9Article 1 Sec. 5. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 10.1 (b) Records and documents relating to medical certifications, recertifications, or medical 10.2histories of employees or family members of employees created for purposes of section 10.3177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records 10.4separate from the usual personnel files. At the request of the employee, the employer must 10.5destroy or return the records required by sections 181.9445 to 181.9448 that are older than 10.6three years prior to the current calendar year. 10.7 (c) Employers may not discriminate against any employee based on records created for 10.8the purposes of section 177.50 or sections 181.9445 to 181.9448. 10.9 Sec. 6. [181.9448] EFFECT ON OTHER LAW OR POLICY. 10.10 Subdivision 1.No effect on more generous sick and safe time policies.(a) Nothing 10.11in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting 10.12or retaining earned sick and safe time policies that meet or exceed, and do not otherwise 10.13conflict with, the minimum standards and requirements provided in sections 181.9445 to 10.14181.9448. 10.15 (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of 10.16parties to a collective bargaining agreement to bargain and agree with respect to earned sick 10.17and safe time policies or to diminish the obligation of an employer to comply with any 10.18contract, collective bargaining agreement, or any employment benefit program or plan that 10.19meets or exceeds, and does not otherwise conflict with, the minimum standards and 10.20requirements provided in this section. 10.21 (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or 10.22otherwise affect the applicability of any other law, regulation, requirement, policy, or 10.23standard that provides for a greater amount, accrual, or use by employees of paid sick and 10.24safe time or that extends other protections to employees. 10.25 (d) Employers who provide earned sick and safe time to their employees under a paid 10.26time off policy or other paid leave policy that may be used for the same purposes and under 10.27the same conditions as earned sick and safe time, and that meets or exceeds, and does not 10.28otherwise conflict with, the minimum standards and requirements provided in sections 10.29181.9445 to 181.9448 are not required to provide additional earned sick and safe time. 10.30 (e) An employer may opt to satisfy the requirements of sections 181.9445 to 181.9448 10.31for construction industry employees by: 10.32 (1) paying at least the prevailing wage rate as defined by section 177.42 and as calculated 10.33by the Department of Labor and Industry; or 10Article 1 Sec. 6. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 11.1 (2) paying at least the required rate established in a registered apprenticeship agreement 11.2for apprentices registered with the Department of Labor and Industry. 11.3An employer electing this option is deemed to be in compliance with sections 181.9445 to 11.4181.9448 for construction industry employees who receive either at least the prevailing 11.5wage rate or the rate required in the applicable apprenticeship agreement regardless of 11.6whether the employees are working on private or public projects. 11.7 (f) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy 11.8whereby employees may donate unused accrued sick and safe time to another employee. 11.9 (g) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and 11.10safe time to an employee before accrual by the employee. 11.11 Subd. 2.Termination; separation; transfer.Sections 181.9445 to 181.9448 do not 11.12require financial or other reimbursement to an employee from an employer upon the 11.13employee's termination, resignation, retirement, or other separation from employment for 11.14accrued earned sick and safe time that has not been used. If an employee is transferred to 11.15a separate division, entity, or location, but remains employed by the same employer, the 11.16employee is entitled to all earned sick and safe time accrued at the prior division, entity, or 11.17location and is entitled to use all earned sick and safe time as provided in sections 181.9445 11.18to 181.9448. When there is a separation from employment and the employee is rehired 11.19within 180 days of separation by the same employer, previously accrued earned sick and 11.20safe time that had not been used must be reinstated. An employee is entitled to use accrued 11.21earned sick and safe time and accrue additional earned sick and safe time at the 11.22commencement of reemployment. 11.23 Subd. 3.Employer succession.(a) When a different employer succeeds or takes the 11.24place of an existing employer, all employees of the original employer who remain employed 11.25by the successor employer are entitled to all earned sick and safe time accrued but not used 11.26when employed by the original employer, and are entitled to use all earned sick and safe 11.27time previously accrued but not used. 11.28 (b) If, at the time of transfer of the business, employees are terminated by the original 11.29employer and hired within 30 days by the successor employer following the transfer, those 11.30employees are entitled to all earned sick and safe time accrued but not used when employed 11.31by the original employer, and are entitled to use all earned sick and safe time previously 11.32accrued but not used. 11Article 1 Sec. 6. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 12.1 Sec. 7. SEVERABILITY. 12.2 If any provision of this act or application thereof to any person or circumstance is judged 12.3invalid, the invalidity shall not affect other provisions or applications of the act which can 12.4be given effect without the invalid provision or application, and to this end the provisions 12.5of this act are declared severable. 12.6 Sec. 8. REPEALER. 12.7 Minnesota Statutes 2022, section 181.9413, is repealed. 12.8 Sec. 9. EFFECTIVE DATE. 12.9 This article is effective January 1, 2024. 12.10 ARTICLE 2 12.11 EARNED SICK AND SAFE TIME ENFORCEMENT 12.12Section 1. Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read: 12.13 Subd. 2.Submission of records; penalty.The commissioner may require the employer 12.14of employees working in the state to submit to the commissioner photocopies, certified 12.15copies, or, if necessary, the originals of employment records which the commissioner deems 12.16necessary or appropriate. The records which may be required include full and correct 12.17statements in writing, including sworn statements by the employer, containing information 12.18relating to wages, hours, names, addresses, and any other information pertaining to the 12.19employer's employees and the conditions of their employment as the commissioner deems 12.20necessary or appropriate. 12.21 The commissioner may require the records to be submitted by certified mail delivery 12.22or, if necessary, by personal delivery by the employer or a representative of the employer, 12.23as authorized by the employer in writing. 12.24 The commissioner may fine the employer up to $1,000 $10,000 for each failure to submit 12.25or deliver records as required by this section, and up to $5,000 for each repeated failure. 12.26This penalty is in addition to any penalties provided under section 177.32, subdivision 1. 12.27In determining the amount of a civil penalty under this subdivision, the appropriateness of 12.28such penalty to the size of the employer's business and the gravity of the violation shall be 12.29considered. 12Article 2 Section 1. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 13.1 Sec. 2. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read: 13.2 Subd. 4.Compliance orders.The commissioner may issue an order requiring an 13.3employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 13.4181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, 13.5subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.9445 to 181.9448, or 13.6with any rule promulgated under section 177.28. The commissioner shall issue an order 13.7requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. 13.8For purposes of this subdivision only, a violation is repeated if at any time during the two 13.9years that preceded the date of violation, the commissioner issued an order to the employer 13.10for violation of sections 177.41 to 177.435 and the order is final or the commissioner and 13.11the employer have entered into a settlement agreement that required the employer to pay 13.12back wages that were required by sections 177.41 to 177.435. The department shall serve 13.13the order upon the employer or the employer's authorized representative in person or by 13.14certified mail at the employer's place of business. An employer who wishes to contest the 13.15order must file written notice of objection to the order with the commissioner within 15 13.16calendar days after being served with the order. A contested case proceeding must then be 13.17held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being 13.18served with the order, the employer fails to file a written notice of objection with the 13.19commissioner, the order becomes a final order of the commissioner. 13.20 EFFECTIVE DATE.This section is effective January 1, 2024. 13.21Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read: 13.22 Subd. 7.Employer liability.If an employer is found by the commissioner to have 13.23violated a section identified in subdivision 4, or any rule adopted under section 177.28, and 13.24the commissioner issues an order to comply, the commissioner shall order the employer to 13.25cease and desist from engaging in the violative practice and to take such affirmative steps 13.26that in the judgment of the commissioner will effectuate the purposes of the section or rule 13.27violated. The commissioner shall order the employer to pay to the aggrieved parties back 13.28pay, gratuities, and compensatory damages, less any amount actually paid to the employee 13.29by the employer, and for an additional equal amount as liquidated damages. Any employer 13.30who is found by the commissioner to have repeatedly or willfully violated a section or 13.31sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 $10,000 13.32for each violation for each employee. In determining the amount of a civil penalty under 13.33this subdivision, the appropriateness of such penalty to the size of the employer's business 13.34and the gravity of the violation shall be considered. In addition, the commissioner may order 13Article 2 Sec. 3. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 14.1the employer to reimburse the department and the attorney general for all appropriate 14.2litigation and hearing costs expended in preparation for and in conducting the contested 14.3case proceeding, unless payment of costs would impose extreme financial hardship on the 14.4employer. If the employer is able to establish extreme financial hardship, then the 14.5commissioner may order the employer to pay a percentage of the total costs that will not 14.6cause extreme financial hardship. Costs include but are not limited to the costs of services 14.7rendered by the attorney general, private attorneys if engaged by the department, 14.8administrative law judges, court reporters, and expert witnesses as well as the cost of 14.9transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's 14.10order from the date the order is signed by the commissioner until it is paid, at an annual rate 14.11provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish 14.12escrow accounts for purposes of distributing damages. 14.13Sec. 4. [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT . 14.14 Subdivision 1.Definitions.The definitions in section 181.9445 apply to this section. 14.15 Subd. 2.Rulemaking authority.The commissioner may adopt rules to carry out the 14.16purposes of this section and sections 181.9445 to 181.9448. 14.17 Subd. 3.Individual remedies.An action to recover damages under section 181.944 for 14.18violation of sections 181.9445 to 181.9448 must be commenced within three years of the 14.19violation that caused the injury to the employee. 14.20 Subd. 4.Grants to community organizations.The commissioner may make grants to 14.21community organizations for the purpose of outreach to and education for employees 14.22regarding their rights under sections 181.9445 to 181.9448. The community-based 14.23organizations must be selected based on their experience, capacity, and relationships in 14.24high-violation industries. The work under such a grant may include the creation and 14.25administration of a statewide worker hotline. 14.26 Subd. 5.Report to legislature.(a) The commissioner must submit an annual report to 14.27the legislature, including to the chairs and ranking minority members of any relevant 14.28legislative committee. The report must include but is not limited to: 14.29 (1) a list of all violations of sections 181.9445 to 181.9448, including the employer 14.30involved, and the nature of any violations; and 14.31 (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any 14.32patterns by employer, industry, or county. 14Article 2 Sec. 4. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 15.1 (b) A report under this section must not include an employee's name or other identifying 15.2information, any health or medical information regarding an employee or an employee's 15.3family member, or any information pertaining to domestic abuse, sexual assault, or stalking 15.4of an employee or an employee's family member. 15.5 Subd. 6.Contract for labor or services.It is the responsibility of all employers to not 15.6enter into any contract or agreement for labor or services where the employer has any actual 15.7knowledge or knowledge arising from familiarity with the normal facts and circumstances 15.8of the business activity engaged in, or has any additional facts or information that, taken 15.9together, would make a reasonably prudent person undertake to inquire whether, taken 15.10together, the contractor is not complying or has failed to comply with this section. For 15.11purposes of this subdivision, "actual knowledge" means information obtained by the employer 15.12that the contractor has violated this section within the past two years and has failed to present 15.13the employer with credible evidence that such noncompliance has been cured going forward. 15.14 EFFECTIVE DATE.This section is effective January 1, 2024, except that the 15.15commissioner is authorized to begin rulemaking the day following final enactment, and the 15.16commissioner is authorized to begin the grant-making process under subdivision 4 the day 15.17following final enactment. 15.18Sec. 5. Minnesota Statutes 2022, section 181.944, is amended to read: 15.19 181.944 INDIVIDUAL REMEDIES. 15.20 In addition to any other remedies provided by law, a person injured by a violation of 15.21sections 181.172, paragraph (a) or (d), and 181.939 to 181.943, and 181.9445 to 181.9448 15.22may bring a civil action to recover any and all damages recoverable at law, together with 15.23costs and disbursements, including reasonable attorney's fees, and may receive injunctive 15.24and other equitable relief as determined by a court. 15.25 EFFECTIVE DATE.This section is effective January 1, 2024. 15.26 ARTICLE 3 15.27EARNED SICK AND SAFE TIME APPROPRIATIONS; CONFORMING CHANGES 15.28Section 1. Minnesota Statutes 2022, section 2.722, subdivision 1, is amended to read: 15.29 Subdivision 1.Description.Effective July 1, 1959, the state is divided into ten judicial 15.30districts composed of the following named counties, respectively, in each of which districts 15.31judges shall be chosen as hereinafter specified: 15Article 3 Section 1. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 16.1 1. Goodhue, Dakota, Carver, Le Sueur, McLeod, Scott, and Sibley; 36 judges; and four 16.2permanent chambers shall be maintained in Red Wing, Hastings, Shakopee, and Glencoe 16.3and one other shall be maintained at the place designated by the chief judge of the district; 16.4 2. Ramsey; 26 judges; 16.5 3. Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, Waseca, Freeborn, Mower, 16.6and Fillmore; 23 judges; and permanent chambers shall be maintained in Faribault, Albert 16.7Lea, Austin, Rochester, and Winona; 16.8 4. Hennepin; 60 judges; 16.9 5. Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, Lincoln, Cottonwood, 16.10Murray, Nobles, Pipestone, Rock, Faribault, Martin, and Jackson; 17 judges; and permanent 16.11chambers shall be maintained in Marshall, Windom, Fairmont, New Ulm, and Mankato; 16.12 6. Carlton, St. Louis, Lake, and Cook; 15 judges; 16.13 7. Benton, Douglas, Mille Lacs, Morrison, Otter Tail, Stearns, Todd, Clay, Becker, and 16.14Wadena; 30 judges; and permanent chambers shall be maintained in Moorhead, Fergus 16.15Falls, Little Falls, and St. Cloud; 16.16 8. Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, Swift, Yellow Medicine, Big 16.17Stone, Grant, Pope, Stevens, Traverse, and Wilkin; 11 judges; and permanent chambers 16.18shall be maintained in Morris, Montevideo, and Willmar; 16.19 9. Norman, Polk, Marshall, Kittson, Red Lake, Roseau, Mahnomen, Pennington, Aitkin, 16.20Itasca, Crow Wing, Hubbard, Beltrami, Lake of the Woods, Clearwater, Cass and 16.21Koochiching; 24 25 judges; and permanent chambers shall be maintained in Crookston, 16.22Thief River Falls, Bemidji, Brainerd, Grand Rapids, and International Falls; and 16.23 10. Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, Chisago, and Washington; 45 16.24judges; and permanent chambers shall be maintained in Anoka, Stillwater, and other places 16.25designated by the chief judge of the district. 16.26 EFFECTIVE DATE.This section is effective July 1, 2024. 16.27Sec. 2. EARNED SICK AND SAFE TIME APPROPRIATIONS. 16.28 (a) $1,445,000 in fiscal year 2024 and $2,209,000 in fiscal year 2025 are appropriated 16.29from the general fund to the commissioner of labor and industry for enforcement and other 16.30duties regarding earned sick and safe time under Minnesota Statutes, sections 181.9445 to 16.31181.9448, and chapter 177. In fiscal year 2026, the base is $1,899,000. 16Article 3 Sec. 2. REVISOR SS H0019-3HF19 THIRD ENGROSSMENT 17.1 (b) $3,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 17.2of management and budget for printing costs associated with earned sick and safe time 17.3under Minnesota Statutes, sections 181.9445 to 181.9448. 17.4 (c) $17,000 in fiscal year 2024 and $3,000 in fiscal year 2025 are appropriated from the 17.5general fund to the commissioner of management and budget for system programming costs 17.6associated with this act. 17.7 (d) $127,000 in fiscal year 2024 and $261,000 in fiscal year 2025 are appropriated from 17.8the general fund to the entities specified in paragraph (e) to offset the cost of earned sick 17.9and safe time leave required under this act of executive branch state agencies, boards, and 17.10commissions. 17.11 (e) The commissioner of management and budget must determine an allocation of the 17.12amount appropriated in paragraph (d) for each executive branch state agency, board, and 17.13commission. Each allocation is directly appropriated to each of these entities as specified 17.14by the commissioner. 17.15 (f) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from 17.16the general fund to the commissioner of labor and industry for grants to community 17.17organizations under Minnesota Statutes, section 177.50, subdivision 4. This is a onetime 17.18appropriation. 17.19 (g) $18,000 in fiscal year 2024 is appropriated from the general fund to the house of 17.20representatives to modify timecard and human resources systems as necessary to comply 17.21with this act. 17.22 (h) $1,000 in fiscal year 2024 is appropriated from the general fund to the supreme court 17.23for costs associated with employment rights notice requirements, and $494,000 in fiscal 17.24year 2025 is appropriated from the general fund to the supreme court for a new judge unit 17.25in the Ninth Judicial District. The general fund base for this appropriation in fiscal year 17.262026 and beyond is $461,000. 17Article 3 Sec. 2. REVISOR SS H0019-3HF19 THIRD 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: H0019-3