Bill > SF2360

This bill requires the commissioners of revenue, employment and economic development, and labor and industry to collaboratively conduct a comprehensive biennial analysis of worker misclassification in Minnesota. Every two years, starting January 15, 2027, the commissioner of labor and industry must submit a detailed report to legislative committee chairs, which will include estimates on the number of misclassified workers, the economic impact on workers, misclassification prevalence by industry, and the financial consequences to various state funds such as unemployment insurance, workers' compensation, and workforce development. The report will be based on data gathered from multiple state departments, including information on tax audits, 1099 filings, misclassification complaints, and investigation findings. The bill also appropriates funds from the workforce development fund to support the research, allowing the commissioner to enter into interagency agreements to transfer funds and potentially contract with external experts to develop the report. Misclassification typically occurs when employers incorrectly classify workers as independent contractors instead of employees, which can deprive workers of benefits and protects employers from paying certain taxes and benefits.

Budget and Finance, Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2360&ssn=0&y=2025