1.1 A bill for an act 1.2 relating to labor; allowing union members to allocate union dues to the local, state, 1.3 or national organization of their choice; amending Minnesota Statutes 2024, sections 1.4 179A.06, subdivision 6; 181.06, subdivision 2. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 179A.06, subdivision 6, is amended to read: 1.7 Subd. 6.Payroll deduction, authorization, and remittance.(a) A public employee 1.8may request payroll deduction for the exclusive representative that represents the employee's 1.9position and its associated political fund under section 10A.12, or to allocate all or a portion 1.10of the public employee's union dues or membership fees to the local, state, or national 1.11organization of the public employee's choice. The exclusive representative must inform 1.12public employees of the option to allocate their union dues or membership fees to the local, 1.13state, or national organization of the public employee's choice. Any dues deduction 1.14authorization must clearly provide public employees this choice. If no exclusive 1.15representative represents an employee's position, the public employee may request payroll 1.16deduction for the organization of the employee's choice. A public employer must provide 1.17payroll deduction according to any public employee's request under this paragraph. 1.18 (b) A public employer must rely on a certification from an exclusive representative 1.19requesting remittance of a deduction that the organization has and will maintain an 1.20authorization signed, either by hand or electronically according to section 325L.02, paragraph 1.21(h), by the public employee from whose salary or wages the deduction is to be made. An 1.22exclusive representative making a certification is not required to provide the public employer 1Section 1. REVISOR VH/AD 25-0149003/03/25 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 2240 NINETY-FOURTH SESSION Authored by Bakeberg, Mueller, Schultz, Mekeland and Bennett03/12/2025 The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy 2.1a copy of the authorization unless a dispute arises about the authorization's existence or 2.2terms. 2.3 (c) A payroll deduction authorization is effective until the exclusive representative 2.4notifies the employer that a public employee has changed or canceled the employee's 2.5authorization in writing in accordance with the terms of the original authorization. When 2.6determining whether deductions have been properly changed or canceled, a public employer 2.7must rely on information from the exclusive representative receiving remittance of the 2.8deduction. 2.9 (d) Deduction authorization under this section is: 2.10 (1) independent from the public employee's membership status in the organization to 2.11which payment is remitted; and 2.12 (2) effective regardless of whether a collective bargaining agreement authorizes the 2.13deduction. 2.14 (e) An employer must: 2.15 (1) begin deductions within 30 days after an exclusive representative submits a 2.16certification under paragraph (b); and 2.17 (2) remit the deductions to the exclusive representative or to the organization of the 2.18public employee's choice within 30 days of the deduction. 2.19 (f) An exclusive representative must indemnify a public employer: 2.20 (1) for any successful employee claim for unauthorized employer deductions made by 2.21relying on an exclusive representative's certification under paragraph (b); and 2.22 (2) for any successful employee claim for unauthorized employer deductions made by 2.23relying on information for changing or canceling deductions under paragraph (c), with 2.24indemnification including any reasonable attorney fees and litigation costs. 2.25 (g) Any dispute under this subdivision must be resolved through an unfair labor practice 2.26proceeding under section 179A.13. It is an unfair labor practice if an employer fails to 2.27comply with paragraph (e), and the employer must reimburse deductions that should have 2.28been made or remitted based on a valid authorization given by the employee or employees. 2.29 Sec. 2. Minnesota Statutes 2024, section 181.06, subdivision 2, is amended to read: 2.30 Subd. 2.Payroll deductions.(a) A written contract may be entered into between an 2.31employer and an employee wherein the employee authorizes the employer to make payroll 2Sec. 2. REVISOR VH/AD 25-0149003/03/25 3.1deductions for the purpose of paying union dues, premiums of any life insurance, 3.2hospitalization and surgical insurance, group accident and health insurance, group term life 3.3insurance, group annuities or contributions to credit unions or a community chest fund, a 3.4local arts council, a local science council or a local arts and science council, or Minnesota 3.5benefit association, a federally or state registered political action committee, membership 3.6dues of a relief association governed by sections 424A.091 to 424A.096 or Laws 2013, 3.7chapter 111, article 5, sections 31 to 42, contributions to a nonprofit organization that is tax 3.8exempt under section 501(c) of the Internal Revenue Code, or participation in any employee 3.9stock purchase plan or savings plan for periods longer than 60 days, including gopher state 3.10bonds established under section 16A.645. A private sector employer must make payroll 3.11deductions to a nonlabor organization under this subdivision when requested by five or 3.12more employees. 3.13 (b) A private employee who makes a payroll deduction under paragraph (a) for the 3.14purpose of paying union dues or membership fees may elect to allocate all or a portion of 3.15the private employee's union dues or membership fees to the local, state, or national 3.16organization of the private employee's choice. An exclusive representative of the organization 3.17shall provide union members notice of this option, and any dues deduction authorization 3.18must clearly provide members this choice. In the absence of an exclusive representative, a 3.19private union member has the right to request and be allowed a payroll deduction for the 3.20local, state, or national organization of the private union member's choice. 3Sec. 2. REVISOR VH/AD 25-0149003/03/25