This bill seeks to combat the misclassification of employees in Minnesota by prohibiting employers from misrepresenting employment relationships. It introduces new legal language that defines prohibited activities, such as failing to classify individuals as employees, not reporting employees to authorities, and requiring misclassification agreements. The bill establishes penalties for violations, including fines of up to $10,000 for each misclassification and additional penalties for obstructing investigations. It also allows for individual liability for owners or agents involved in these prohibited activities. Furthermore, the bill amends various sections of Minnesota Statutes to enhance the authority of the commissioner of labor and industry in investigating wage claims and enforcing compliance.

Additionally, the bill creates the "Intergovernmental Misclassification Enforcement and Education Partnership Act," which aims to improve collaboration among state agencies to address employee misclassification. This partnership will include key members from various departments and will focus on investigations, public outreach, and education regarding employee rights and responsibilities. The bill also revises the registration requirements for construction contractors, emphasizing compliance with employment laws and introducing penalties for non-compliance. Overall, the legislation aims to strengthen worker protections and ensure fair treatment in the workplace, with an effective date set for August 1, 2024, for certain provisions.

Statutes affected:
Introduction: 177.27, 181.171, 181.722, 181.723, 270B.14, 326B.081, 326B.082, 326B.701
1st Engrossment: 177.27, 181.171, 181.722, 181.723, 270B.14, 326B.081, 326B.082, 326B.701
2nd Engrossment: 177.27, 181.171, 181.722, 181.723, 270B.14, 326B.081, 326B.082, 326B.701
3rd Engrossment: 177.27, 181.171, 181.722, 181.723, 270B.14, 326B.081, 326B.082, 326B.701