This bill mandates the creation of a biennial Misclassification Fraud Impact Report in Minnesota, requiring the commissioners of revenue, employment and economic development, and labor and industry to collaborate on an analysis of the costs associated with worker misclassification. The report, due by January 15 of every odd-numbered year starting in 2027, will estimate the number of misclassified workers, the financial impact on these workers, the prevalence of misclassification by industry, and the effects on various state funds, including unemployment insurance and workers' compensation. The commissioner of labor and industry may engage external experts to assist in the study and report.

Additionally, the bill includes an appropriation of funds from the workforce development fund to support the report's preparation and associated staff costs. The commissioner of labor and industry is authorized to enter into interagency agreements to facilitate the transfer of these funds for the report's expenses. This legislative effort aims to enhance understanding and address the implications of worker misclassification in Minnesota.

Statutes affected:
Introduction: 181.725