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 and requiring misclassification agreements. The bill establishes penalties for violations, including fines of up to $10,000 for each misclassification, and allows for individual liability for owners or agents involved in these practices. It also enhances the authority of the commissioner of labor and industry to investigate wage claims and imposes stricter compliance requirements on employers regarding employee classification.

Additionally, the bill establishes the "Intergovernmental Misclassification Enforcement and Education Partnership Act," which aims to improve coordination among state agencies to address misclassification issues. It outlines the roles of various commissioners and mandates quarterly meetings to discuss relevant issues. The bill also includes provisions for data sharing among partnership entities to enhance enforcement efforts and introduces penalties for obstructing investigations. Furthermore, it amends existing statutes related to contractor registration, compliance orders, and licensing, while appropriating funds for enforcement and data sharing initiatives. The effective date for many of these changes is set for August 1, 2024, with specific provisions for contracts and services provided on or after January 1, 2025.

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
4th Engrossment: 177.27, 181.171, 181.722, 181.723, 270B.14, 326B.081, 326B.082, 326B.701