1.1 A bill for an act 1.2 relating to employment; providing for earned sick and safe time; adding a district 1.3 court judge to the Ninth Judicial District; requiring a report; authorizing rulemaking; 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 H0019-4HF19 FOURTH 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 Calendar for the Day, Amended02/16/2023 Read Third Time as Amended Passed by the House as Amended and transmitted to the Senate to include Floor Amendments 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 H0019-4HF19 FOURTH 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.Sexual assault."Sexual assault" means an act that constitutes a violation under 3.27sections 609.342 to 609.3453 or 609.352. 3.28 Subd. 10.Stalking."Stalking" has the meaning given in section 609.749. 3.29 Subd. 11.Year."Year" means a regular and consecutive 12-month period, as determined 3.30by an employer and clearly communicated to each employee of that employer. 3Article 1 Sec. 3. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 4.1 Sec. 4. [181.9446] ACCRUAL OF EARNED SICK AND SAFE TIME. 4.2 (a) An employee accrues a minimum of one hour of earned sick and safe time for every 4.330 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. 4.4Employees may not accrue more than 48 hours of earned sick and safe time in a year unless 4.5the employer agrees to a higher amount. 4.6 (b)(1) Except as provided in clause (2), employers must permit an employee to carry 4.7over accrued but unused sick and safe time into the following year. The total amount of 4.8accrued but unused earned sick and safe time for an employee must not exceed 80 hours at 4.9any time, unless an employer agrees to a higher amount. 4.10 (2) In lieu of permitting the carryover of accrued but unused sick and safe time into the 4.11following year as provided under clause (1), an employer may provide an employee with 4.12earned sick and safe time for the year that meets or exceeds the requirements of this section 4.13that is available for the employee's immediate use at the beginning of the subsequent year 4.14as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and 4.15safe time at the end of a year at the same hourly rate as an employee earns from employment; 4.16or (ii) 80 hours, if an employer does not pay an employee for accrued but unused sick and 4.17safe time at the end of a year at the same or greater hourly rate as an employee earns from 4.18employment. In no case shall this hourly rate be less than that provided under section 177.24, 4.19or an applicable local minimum wage. 4.20 (c) Employees who are exempt from overtime requirements under United States Code, 4.21title 29, section 213(a)(1), as amended through the effective date of this section, are deemed 4.22to work 40 hours in each workweek for purposes of accruing earned sick and safe time, 4.23except that an employee whose normal workweek is less than 40 hours will accrue earned 4.24sick and safe time based on the normal workweek. 4.25 (d) Earned sick and safe time under this section begins to accrue at the commencement 4.26of employment of the employee. 4.27 (e) Employees may use earned sick and safe time as it is accrued. 4.28 Sec. 5. [181.9447] USE OF EARNED SICK AND SAFE TIME. 4.29 Subdivision 1.Eligible use.An employee may use accrued earned sick and safe time 4.30for: 4.31 (1) an employee's: 4.32 (i) mental or physical illness, injury, or other health condition; 4Article 1 Sec. 5. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 5.1 (ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, 5.2or health condition; or 5.3 (iii) need for preventive medical or health care; 5.4 (2) care of a family member: 5.5 (i) with a mental or physical illness, injury, or other health condition; 5.6 (ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, 5.7injury, or other health condition; or 5.8 (iii) who needs preventive medical or health care; 5.9 (3) absence due to domestic abuse, sexual assault, or stalking of the employee or 5.10employee's family member, provided the absence is to: 5.11 (i) seek medical attention related to physical or psychological injury or disability caused 5.12by domestic abuse, sexual assault, or stalking; 5.13 (ii) obtain services from a victim services organization; 5.14 (iii) obtain psychological or other counseling; 5.15 (iv) seek relocation or take steps to secure an existing home due to domestic abuse, 5.16sexual assault, or stalking; or 5.17 (v) seek legal advice or take legal action, including preparing for or participating in any 5.18civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, 5.19or stalking; 5.20 (4) closure of the employee's place of business due to weather or other public emergency 5.21or an employee's need to care for a family member whose school or place of care has been 5.22closed due to weather or other public emergency; 5.23 (5) the employee's inability to work or telework because the employee is: (i) prohibited 5.24from working by the employer due to health concerns related to the potential transmission 5.25of a communicable illness related to a public emergency; or (ii) seeking or awaiting the 5.26results of a diagnostic test for, or a medical diagnosis of, a communicable disease related 5.27to a public emergency and such employee has been exposed to a communicable disease or 5.28the employee's employer has requested a test or diagnosis; and 5.29 (6) when it has been determined by the health authorities having jurisdiction or by a 5.30health care professional that the presence of the employee or family member of the employee 5.31in the community would jeopardize the health of others because of the exposure of the 5Article 1 Sec. 5. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 6.1employee or family member of the employee to a communicable disease, whether or not 6.2the employee or family member has actually contracted the communicable disease. 6.3 For the purposes of this subdivision, a public emergency shall include a declared 6.4emergency as defined in section 12.03 or a declared local emergency under section 12.29. 6.5 Subd. 2.Notice.An employer may require notice of the need for use of earned sick and 6.6safe time as provided in this paragraph. If the need for use is foreseeable, an employer may 6.7require advance notice of the intention to use earned sick and safe time but must not require 6.8more than seven days' advance notice. If the need is unforeseeable, an employer may require 6.9an employee to give notice of the need for earned sick and safe time as soon as practicable. 6.10An employer that requires notice of the need to use earned sick and safe time in accordance 6.11with this subdivision shall have a written policy containing reasonable procedures for 6.12employees to provide notice of the need to use earned sick and safe time, and shall provide 6.13a written copy of such policy to employees. If a copy of the written policy has not been 6.14provided to an employee, an employer shall not deny the use of earned sick and safe time 6.15to the employee on that basis. 6.16 Subd. 3.Documentation.(a) When an employee uses earned sick and safe time for 6.17more than three consecutive days, an employer may require reasonable documentation that 6.18the earned sick and safe time is covered by subdivision 1. 6.19 (b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), 6.20reasonable documentation may include a signed statement by a health care professional 6.21indicating the need for use of earned sick and safe time. However, if the employee or 6.22employee's family member did not receive services from a health care professional, or if 6.23documentation cannot be obtained from a health care professional in a reasonable time or 6.24without added expense, then reasonable documentation for the purposes of this paragraph 6.25may include a written statement from the employee indicating that the employee is using 6.26or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause 6.27(1), (2), (5), or (6). 6.28 (c) For earned sick and safe time under subdivision 1, clause (3), an employer must 6.29accept a court record or documentation signed by a volunteer or employee of a victims 6.30services organization, an attorney, a police officer, or an antiviolence counselor as reasonable 6.31documentation. 6.32 (d) For earned sick and safe time to care for a family member under subdivision 1, clause 6.33(4), an employer must accept as reasonable documentation a written statement from the 6Article 1 Sec. 5. REVISOR SS H0019-4HF19 FOURTH 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 retaliation 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 retaliation. 7Article 1 Sec. 5. REVISOR SS H0019-4HF19 FOURTH 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 8.21retaliation against employees who request or use earned sick and safe time is prohibited; 8.22and that each employee has the right to file a complaint or bring a civil action if earned sick 8.23and safe time is denied by the employer or the employee is retaliated against for requesting 8.24or 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 H0019-4HF19 FOURTH 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 (e) The Department of Labor and Industry shall prepare a uniform employee notice form 9.7for employers to use that provides the notice information required under this section. The 9.8commissioner shall prepare the uniform employee notice in the five most common languages 9.9spoken in Minnesota. Upon the written request of an employer who is subject to this section, 9.10the commissioner shall provide a copy of the uniform employee notice in any primary 9.11language spoken by an employee in the employer's place of business. If the commissioner 9.12does not provide the copy of the uniform employee notice in response to a request under 9.13this paragraph, the employer who makes the request is not subject to a penalty for failing 9.14to provide the required notice under this subdivision for violations that arise after the date 9.15of the request. The commissioner shall pay for any costs associated with preparing the 9.16uniform employee notice form or providing additional copies under this paragraph. 9.17 Subd. 10.Required statement to employee.(a) Upon request of the employee, the 9.18employer must provide, in writing or electronically, current information stating the 9.19employee's amount of: 9.20 (1) earned sick and safe time available to the employee; and 9.21 (2) used earned sick and safe time. 9.22 (b) Employers may choose a reasonable system for providing the information in paragraph 9.23(a), including but not limited to listing information on each pay stub or developing an online 9.24system where employees can access their own information. 9.25 Subd. 11.Employer records.(a) Employers shall retain accurate records documenting 9.26hours worked by employees and earned sick and safe time taken and comply with all 9.27requirements under section 177.30. 9.28 (b) An employer must allow an employee to inspect records required by this section and 9.29relating to that employee at a reasonable time and place. 9.30 Subd. 12.Confidentiality and nondisclosure.(a) If, in conjunction with this section, 9.31an employer possesses: 9Article 1 Sec. 5. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 10.1 (1) health or medical information regarding an employee or an employee's family 10.2member; 10.3 (2) information pertaining to domestic abuse, sexual assault, or stalking; 10.4 (3) information that the employee has requested or obtained leave under this section; or 10.5 (4) any written or oral statement, documentation, record, or corroborating evidence 10.6provided by the employee or an employee's family member, the employer must treat such 10.7information as confidential. 10.8Information given by an employee may only be disclosed by an employer if the disclosure 10.9is requested or consented to by the employee, when ordered by a court or administrative 10.10agency, or when otherwise required by federal or state law. 10.11 (b) Records and documents relating to medical certifications, recertifications, or medical 10.12histories of employees or family members of employees created for purposes of section 10.13177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records 10.14separate from the usual personnel files. At the request of the employee, the employer must 10.15destroy or return the records required by sections 181.9445 to 181.9448 that are older than 10.16three years prior to the current calendar year. 10.17 (c) Employers may not discriminate against any employee based on records created for 10.18the purposes of section 177.50 or sections 181.9445 to 181.9448. 10.19Sec. 6. [181.9448] EFFECT ON OTHER LAW OR POLICY. 10.20 Subdivision 1.No effect on more generous sick and safe time policies.(a) Nothing 10.21in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting 10.22or retaining earned sick and safe time policies that meet or exceed, and do not otherwise 10.23conflict with, the minimum standards and requirements provided in sections 181.9445 to 10.24181.9448. 10.25 (b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of 10.26parties to a collective bargaining agreement to bargain and agree with respect to earned sick 10.27and safe time policies or to diminish the obligation of an employer to comply with any 10.28contract, collective bargaining agreement, or any employment benefit program or plan that 10.29meets or exceeds, and does not otherwise conflict with, the minimum standards and 10.30requirements provided in this section. 10.31 (c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or 10.32otherwise affect the applicability of any other law, regulation, requirement, policy, or 10Article 1 Sec. 6. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 11.1standard that provides for a greater amount, accrual, or use by employees of paid sick and 11.2safe time or that extends other protections to employees. 11.3 (d) Nothing in sections 181.9445 to 181.9448 shall be construed or applied so as to 11.4create any power or duty in conflict with federal law. 11.5 (e) Employers who provide earned sick and safe time to their employees under a paid 11.6time off policy or other paid leave policy that may be used for the same purposes and under 11.7the same conditions as earned sick and safe time, and that meets or exceeds, and does not 11.8otherwise conflict with, the minimum standards and requirements provided in sections 11.9181.9445 to 181.9448 are not required to provide additional earned sick and safe time. 11.10 (f) The provisions of sections 181.9445 to 181.9448 may be waived by a collective 11.11bargaining agreement with a bona fide building and construction trades labor organization 11.12that has established itself as the collective bargaining representative for the affected building 11.13and construction industry employees, provided that for such waiver to be valid, it shall 11.14explicitly reference sections 181.9445 to 181.9448 and clearly and unambiguously waive 11.15application of those sections to such employees. 11.16 (g) Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a 11.17policy whereby employees may donate unused accrued sick and safe time to another 11.18employee. 11.19 (h) Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and 11.20safe time to an employee before accrual by the employee. 11.21 Subd. 2.Termination; separation; transfer.Sections 181.9445 to 181.9448 do not 11.22require financial or other reimbursement to an employee from an employer upon the 11.23employee's termination, resignation, retirement, or other separation from employment for 11.24accrued earned sick and safe time that has not been used. If an employee is transferred to 11.25a separate division, entity, or location, but remains employed by the same employer, the 11.26employee is entitled to all earned sick and safe time accrued at the prior division, entity, or 11.27location and is entitled to use all earned sick and safe time as provided in sections 181.9445 11.28to 181.9448. When there is a separation from employment and the employee is rehired 11.29within 180 days of separation by the same employer, previously accrued earned sick and 11.30safe time that had not been used must be reinstated. An employee is entitled to use accrued 11.31earned sick and safe time and accrue additional earned sick and safe time at the 11.32commencement of reemployment. 11.33 Subd. 3.Employer succession.(a) When a different employer succeeds or takes the 11.34place of an existing employer, all employees of the original employer who remain employed 11Article 1 Sec. 6. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 12.1by the successor employer are entitled to all earned sick and safe time accrued but not used 12.2when employed by the original employer, and are entitled to use all earned sick and safe 12.3time previously accrued but not used. 12.4 (b) If, at the time of transfer of the business, employees are terminated by the original 12.5employer and hired within 30 days by the successor employer following the transfer, those 12.6employees are entitled to all earned sick and safe time accrued but not used when employed 12.7by the original employer, and are entitled to use all earned sick and safe time previously 12.8accrued but not used. 12.9 Sec. 7. SEVERABILITY. 12.10 If any provision of this act or application thereof to any person or circumstance is judged 12.11invalid, the invalidity shall not affect other provisions or applications of the act which can 12.12be given effect without the invalid provision or application, and to this end the provisions 12.13of this act are declared severable. 12.14Sec. 8. REPEALER. 12.15 Minnesota Statutes 2022, section 181.9413, is repealed. 12.16Sec. 9. EFFECTIVE DATE. 12.17 This article is effective January 1, 2024. 12.18 ARTICLE 2 12.19 EARNED SICK AND SAFE TIME ENFORCEMENT 12.20Section 1. Minnesota Statutes 2022, section 177.27, subdivision 2, is amended to read: 12.21 Subd. 2.Submission of records; penalty.The commissioner may require the employer 12.22of employees working in the state to submit to the commissioner photocopies, certified 12.23copies, or, if necessary, the originals of employment records which the commissioner deems 12.24necessary or appropriate. The records which may be required include full and correct 12.25statements in writing, including sworn statements by the employer, containing information 12.26relating to wages, hours, names, addresses, and any other information pertaining to the 12.27employer's employees and the conditions of their employment as the commissioner deems 12.28necessary or appropriate. 12Article 2 Section 1. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 13.1 The commissioner may require the records to be submitted by certified mail delivery 13.2or, if necessary, by personal delivery by the employer or a representative of the employer, 13.3as authorized by the employer in writing. 13.4 The commissioner may fine the employer up to $1,000 $10,000 for each failure to submit 13.5or deliver records as required by this section, and up to $5,000 for each repeated failure. 13.6This penalty is in addition to any penalties provided under section 177.32, subdivision 1. 13.7In determining the amount of a civil penalty under this subdivision, the appropriateness of 13.8such penalty to the size of the employer's business and the gravity of the violation shall be 13.9considered. 13.10Sec. 2. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read: 13.11 Subd. 4.Compliance orders.The commissioner may issue an order requiring an 13.12employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 13.13181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, 13.14subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.9445 to 181.9448, or 13.15with any rule promulgated under section 177.28. The commissioner shall issue an order 13.16requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. 13.17For purposes of this subdivision only, a violation is repeated if at any time during the two 13.18years that preceded the date of violation, the commissioner issued an order to the employer 13.19for violation of sections 177.41 to 177.435 and the order is final or the commissioner and 13.20the employer have entered into a settlement agreement that required the employer to pay 13.21back wages that were required by sections 177.41 to 177.435. The department shall serve 13.22the order upon the employer or the employer's authorized representative in person or by 13.23certified mail at the employer's place of business. An employer who wishes to contest the 13.24order must file written notice of objection to the order with the commissioner within 15 13.25calendar days after being served with the order. A contested case proceeding must then be 13.26held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being 13.27served with the order, the employer fails to file a written notice of objection with the 13.28commissioner, the order becomes a final order of the commissioner. 13.29 EFFECTIVE DATE.This section is effective January 1, 2024. 13.30Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 7, is amended to read: 13.31 Subd. 7.Employer liability.If an employer is found by the commissioner to have 13.32violated a section identified in subdivision 4, or any rule adopted under section 177.28, and 13.33the commissioner issues an order to comply, the commissioner shall order the employer to 13Article 2 Sec. 3. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 14.1cease and desist from engaging in the violative practice and to take such affirmative steps 14.2that in the judgment of the commissioner will effectuate the purposes of the section or rule 14.3violated. The commissioner shall order the employer to pay to the aggrieved parties back 14.4pay, gratuities, and compensatory damages, less any amount actually paid to the employee 14.5by the employer, and for an additional equal amount as liquidated damages. Any employer 14.6who is found by the commissioner to have repeatedly or willfully violated a section or 14.7sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 $10,000 14.8for each violation for each employee. In determining the amount of a civil penalty under 14.9this subdivision, the appropriateness of such penalty to the size of the employer's business 14.10and the gravity of the violation shall be considered. In addition, the commissioner may order 14.11the employer to reimburse the department and the attorney general for all appropriate 14.12litigation and hearing costs expended in preparation for and in conducting the contested 14.13case proceeding, unless payment of costs would impose extreme financial hardship on the 14.14employer. If the employer is able to establish extreme financial hardship, then the 14.15commissioner may order the employer to pay a percentage of the total costs that will not 14.16cause extreme financial hardship. Costs include but are not limited to the costs of services 14.17rendered by the attorney general, private attorneys if engaged by the department, 14.18administrative law judges, court reporters, and expert witnesses as well as the cost of 14.19transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's 14.20order from the date the order is signed by the commissioner until it is paid, at an annual rate 14.21provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish 14.22escrow accounts for purposes of distributing damages. 14.23Sec. 4. [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT . 14.24 Subdivision 1.Definitions.The definitions in section 181.9445 apply to this section. 14.25 Subd. 2.Rulemaking authority.The commissioner may adopt rules to carry out the 14.26purposes of this section and sections 181.9445 to 181.9448. 14.27 Subd. 3.Individual remedies.An action to recover damages under section 181.944 for 14.28violation of sections 181.9445 to 181.9448 must be commenced within three years of the 14.29violation that caused the injury to the employee. 14.30 Subd. 4.Grants to community organizations.The commissioner may make grants to 14.31community organizations for the purpose of outreach to and education for employees 14.32regarding their rights under sections 181.9445 to 181.9448. The community-based 14.33organizations must be selected based on their experience, capacity, and relationships in 14Article 2 Sec. 4. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 15.1high-violation industries. The work under such a grant may include the creation and 15.2administration of a statewide worker hotline. 15.3 Subd. 5.Report to legislature.(a) The commissioner must submit an annual report to 15.4the legislature, including to the chairs and ranking minority members of any relevant 15.5legislative committee. The report must include but is not limited to: 15.6 (1) a list of all violations of sections 181.9445 to 181.9448, including the employer 15.7involved, and the nature of any violations; and 15.8 (2) an analysis of noncompliance with sections 181.9445 to 181.9448, including any 15.9patterns by employer, industry, or county. 15.10 (b) A report under this section must not include an employee's name or other identifying 15.11information, any health or medical information regarding an employee or an employee's 15.12family member, or any information pertaining to domestic abuse, sexual assault, or stalking 15.13of an employee or an employee's family member. 15.14 Subd. 6.Contract for labor or services.It is the responsibility of all employers to not 15.15enter into any contract or agreement for labor or services where the employer has any actual 15.16knowledge or knowledge arising from familiarity with the normal facts and circumstances 15.17of the business activity engaged in, or has any additional facts or information that, taken 15.18together, would make a reasonably prudent person undertake to inquire whether, taken 15.19together, the contractor is not complying or has failed to comply with this section. For 15.20purposes of this subdivision, "actual knowledge" means information obtained by the employer 15.21that the contractor has violated this section within the past two years and has failed to present 15.22the employer with credible evidence that such noncompliance has been cured going forward. 15.23 EFFECTIVE DATE.This section is effective January 1, 2024, except that the 15.24commissioner is authorized to begin rulemaking the day following final enactment, and the 15.25commissioner is authorized to begin the grant-making process under subdivision 4 the day 15.26following final enactment. 15.27Sec. 5. Minnesota Statutes 2022, section 181.944, is amended to read: 15.28 181.944 INDIVIDUAL REMEDIES. 15.29 In addition to any other remedies provided by law, a person injured by a violation of 15.30sections 181.172, paragraph (a) or (d), and 181.939 to 181.943, and 181.9445 to 181.9448 15.31may bring a civil action to recover any and all damages recoverable at law, together with 15.32costs and disbursements, including reasonable attorney's fees, and may receive injunctive 15.33and other equitable relief as determined by a court. 15Article 2 Sec. 5. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 16.1 EFFECTIVE DATE.This section is effective January 1, 2024, and applies to causes 16.2of action occurring on or after that date. 16.3 ARTICLE 3 16.4EARNED SICK AND SAFE TIME APPROPRIATIONS; CONFORMING CHANGES 16.5 Section 1. Minnesota Statutes 2022, section 2.722, subdivision 1, is amended to read: 16.6 Subdivision 1.Description.Effective July 1, 1959, the state is divided into ten judicial 16.7districts composed of the following named counties, respectively, in each of which districts 16.8judges shall be chosen as hereinafter specified: 16.9 1. Goodhue, Dakota, Carver, Le Sueur, McLeod, Scott, and Sibley; 36 judges; and four 16.10permanent chambers shall be maintained in Red Wing, Hastings, Shakopee, and Glencoe 16.11and one other shall be maintained at the place designated by the chief judge of the district; 16.12 2. Ramsey; 26 judges; 16.13 3. Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, Waseca, Freeborn, Mower, 16.14and Fillmore; 23 judges; and permanent chambers shall be maintained in Faribault, Albert 16.15Lea, Austin, Rochester, and Winona; 16.16 4. Hennepin; 60 judges; 16.17 5. Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, Lincoln, Cottonwood, 16.18Murray, Nobles, Pipestone, Rock, Faribault, Martin, and Jackson; 17 judges; and permanent 16.19chambers shall be maintained in Marshall, Windom, Fairmont, New Ulm, and Mankato; 16.20 6. Carlton, St. Louis, Lake, and Cook; 15 judges; 16.21 7. Benton, Douglas, Mille Lacs, Morrison, Otter Tail, Stearns, Todd, Clay, Becker, and 16.22Wadena; 30 judges; and permanent chambers shall be maintained in Moorhead, Fergus 16.23Falls, Little Falls, and St. Cloud; 16.24 8. Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, Swift, Yellow Medicine, Big 16.25Stone, Grant, Pope, Stevens, Traverse, and Wilkin; 11 judges; and permanent chambers 16.26shall be maintained in Morris, Montevideo, and Willmar; 16.27 9. Norman, Polk, Marshall, Kittson, Red Lake, Roseau, Mahnomen, Pennington, Aitkin, 16.28Itasca, Crow Wing, Hubbard, Beltrami, Lake of the Woods, Clearwater, Cass and 16.29Koochiching; 24 25 judges; and permanent chambers shall be maintained in Crookston, 16.30Thief River Falls, Bemidji, Brainerd, Grand Rapids, and International Falls; and 16Article 3 Section 1. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 17.1 10. Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, Chisago, and Washington; 45 17.2judges; and permanent chambers shall be maintained in Anoka, Stillwater, and other places 17.3designated by the chief judge of the district. 17.4 EFFECTIVE DATE.This section is effective July 1, 2024. 17.5 Sec. 2. EARNED SICK AND SAFE TIME APPROPRIATIONS. 17.6 (a) $1,445,000 in fiscal year 2024 and $2,209,000 in fiscal year 2025 are appropriated 17.7from the general fund to the commissioner of labor and industry for enforcement and other 17.8duties regarding earned sick and safe time under Minnesota Statutes, sections 181.9445 to 17.9181.9448, and chapter 177. In fiscal year 2026, the base is $1,899,000. 17.10 (b) $3,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 17.11of management and budget for printing costs associated with earned sick and safe time 17.12under Minnesota Statutes, sections 181.9445 to 181.9448. 17.13 (c) $17,000 in fiscal year 2024 and $3,000 in fiscal year 2025 are appropriated from the 17.14general fund to the commissioner of management and budget for system programming costs 17.15associated with this act. 17.16 (d) $127,000 in fiscal year 2024 and $261,000 in fiscal year 2025 are appropriated from 17.17the general fund to the entities specified in paragraph (e) to offset the cost of earned sick 17.18and safe time leave required under this act of executive branch state agencies, boards, and 17.19commissions. 17.20 (e) The commissioner of management and budget must determine an allocation of the 17.21amount appropriated in paragraph (d) for each executive branch state agency, board, and 17.22commission. Each allocation is directly appropriated to each of these entities as specified 17.23by the commissioner. 17.24 (f) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from 17.25the general fund to the commissioner of labor and industry for grants to community 17.26organizations under Minnesota Statutes, section 177.50, subdivision 4. This is a onetime 17.27appropriation. 17.28 (g) $18,000 in fiscal year 2024 is appropriated from the general fund to the house of 17.29representatives to modify timecard and human resources systems as necessary to comply 17.30with this act. 17.31 (h) $1,000 in fiscal year 2024 is appropriated from the general fund to the supreme court 17.32for costs associated with employment rights notice requirements, and $494,000 in fiscal 17Article 3 Sec. 2. REVISOR SS H0019-4HF19 FOURTH ENGROSSMENT 18.1year 2025 is appropriated from the general fund to the supreme court for a new judge unit 18.2in the Ninth Judicial District. The general fund base for this appropriation in fiscal year 18.32026 and beyond is $461,000. 18Article 3 Sec. 2. REVISOR SS H0019-4HF19 FOURTH 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: H0019-4