SF 588

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to employment; prohibiting employers from 
  1.3             misrepresenting the nature of employment 
  1.4             relationships; providing a civil remedy; proposing 
  1.5             coding for new law in Minnesota Statutes, chapter 181. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [181.722] [MISREPRESENTATION OF EMPLOYMENT 
  1.8   RELATIONSHIP PROHIBITED.] 
  1.9      Subdivision 1.  [PROHIBITION.] No employer shall 
  1.10  misrepresent the nature of its employment relationship with its 
  1.11  employees to any federal, state, or local government unit, to 
  1.12  other employers or to its employees.  An employer misrepresents 
  1.13  the nature of its employment relationship with its employees if 
  1.14  it makes any statement regarding the nature of the relationship 
  1.15  that the employer knows or has reason to know is untrue and if 
  1.16  it fails to report individuals as employees when legally 
  1.17  required to do so. 
  1.18     Subd. 2.  [AGREEMENTS TO MISCLASSIFY PROHIBITED.] No 
  1.19  employer shall require or request any employee to enter into any 
  1.20  agreement, or sign any document, that results in 
  1.21  misclassification of the employee as an independent contractor 
  1.22  or otherwise does not accurately reflect the employment 
  1.23  relationship with the employer. 
  1.24     Subd. 3.  [DETERMINATION OF EMPLOYMENT RELATIONSHIP.] For 
  1.25  purposes of this section, the nature of an employment 
  2.1   relationship is determined using the same tests and in the same 
  2.2   manner as employee status is determined under the applicable 
  2.3   workers' compensation and unemployment insurance program laws 
  2.4   and rules. 
  2.5      Subd. 4.  [REPORTING OF VIOLATIONS.] Any court finding any 
  2.6   person guilty of violating this section shall transmit a copy of 
  2.7   the documentation of the finding of guilt to the commissioner of 
  2.8   labor and industry.  The commissioner of labor and industry 
  2.9   shall report the finding of guilt to relevant state and federal 
  2.10  agencies, including at least the commissioner of commerce, the 
  2.11  commissioner of employment and economic development, the 
  2.12  commissioner of revenue, the federal Internal Revenue Service, 
  2.13  and the United States Department of Labor. 
  2.14     Subd. 5.  [CIVIL REMEDY.] A person injured by a violation 
  2.15  of this section may bring an action for damages against the 
  2.16  violator.  There is a rebuttable presumption that a losing 
  2.17  bidder on a project on which a violation of this section has 
  2.18  occurred has suffered damages in an amount equal to the profit 
  2.19  it projected to make on its bid.  The court may award attorney 
  2.20  fees, costs, and disbursements to a party recovering under this 
  2.21  section.  If the person injured is an employee of the violator 
  2.22  of this section, the employee's representative, as defined in 
  2.23  section 179.01, subdivision 5, may bring an action for damages 
  2.24  against the violator on behalf of the employee. 
  2.25     Sec. 2.  [REVISOR'S INSTRUCTION.] 
  2.26     The revisor of statutes shall insert a first grade headnote 
  2.27  prior to Minnesota Statutes, section 181.722, that reads 
  2.28  "MISREPRESENTATION OF EMPLOYMENT RELATIONSHIPS."