This bill mandates the creation of a biennial Misclassification Fraud Impact Report in Minnesota, which will be coordinated by the commissioners of revenue, employment and economic development, and labor and industry. The report aims to analyze the costs associated with worker misclassification, detailing its effects on misclassified workers, government programs, and tax collections. By January 15 of every odd-numbered year starting in 2027, the commissioner of labor and industry is required to present the findings to relevant legislative committees. The report will include estimates of the number of misclassified workers, the financial impact on these workers, the prevalence of misclassification by industry, and the effects on various funds, including unemployment insurance and workers' compensation.

Additionally, the bill appropriates funds from the workforce development fund to support the creation of the Misclassification Fraud Impact Report, with a specified amount for fiscal year 2026 and a base amount for fiscal year 2028. The commissioner of labor and industry is authorized to enter into agreements with other state agencies to facilitate the transfer of these funds for the report's associated costs. This legislative effort aims to enhance understanding and address the implications of worker misclassification in Minnesota.

Statutes affected:
Introduction: 181.725