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MN HF1316

MN HF1316
Independent contractors and payors added to the centralized work reporting system, and payors required to report independent contractors to the centralized work reporting system.


summary

Introduced
02/20/2025
In Committee
04/02/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to child support; adding independent contractors and payors to the centralized work reporting system; requiring payors to report independent contractors to the centralized work reporting system; amending Minnesota Statutes 2024, sections 142A.29, subdivisions 1, 2, 3, 4, 6; 518A.53, subdivision 5; repealing Minnesota Statutes 2024, section 142A.29, subdivision 9.

AI Summary

This bill expands Minnesota's centralized work reporting system to include independent contractors and payors, requiring them to report new hires and providing detailed definitions and procedures. Specifically, the bill defines an "independent contractor" as a person over 18 or a single-member corporation/LLC who performs services for $600 or more per calendar year, including gig economy workers like rideshare and delivery drivers. Employers and payors will now be required to report new independent contractors to the commissioner of children, youth, and families within 20 calendar days of hiring, using methods like federal W-9 forms or electronic submission. The reporting system aims to support child support enforcement and tracking of workforce information. The bill establishes penalties for non-compliance, including potential civil penalties of $25 to $500 per intentionally unreported independent contractor, depending on the circumstances. Employers and payors who fail to report or who deliberately provide false information can face additional sanctions, including potential hearings and legal consequences. The new requirements will become effective on July 1, 2026, giving businesses time to prepare for the expanded reporting obligations.

Committee Categories

Education, Justice, Labor and Employment

Sponsors (1)

Last Action

Hearing (08:15:00 4/3/2025 ) (on 04/03/2025)

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