This bill amends Minnesota Statutes 2024, section 181.725, by adding a new subdivision that mandates annual reporting requirements for partnership entities involved in the Intergovernmental Misclassification Enforcement and Education Partnership. Starting March 1, 2026, these entities must provide detailed reports to legislative committees on various aspects of worker misclassification, including estimates of affected workers, the financial impact on those workers, the effects on law-abiding competitors, and industry-specific misclassification data. Additionally, the reports must include estimates from relevant state departments regarding the impact of misclassification on unemployment insurance, tax collections, and workers' compensation.

The bill also includes appropriations from the general fund for fiscal years 2026 and 2027, allocating funds to various state departments, including labor and industry, revenue, employment and economic development, commerce, and the attorney general, specifically for misclassification fraud analysis. The appropriated funds are intended to cover costs associated with estimating misclassification fraud rates and analyzing the impacts on programs and funds overseen by these agencies, as outlined in the new reporting requirements.

Statutes affected:
Introduction: 181.725