Bill > HF2146

This bill establishes new annual reporting requirements for partnership entities involved in addressing worker misclassification, beginning March 1, 2026. The reports must include estimates of workers experiencing misclassification, the cost to impacted workers, the impact on law-abiding competitors, and misclassification rates by industry. Additionally, the reports must include detailed analyses from multiple state departments: the Department of Employment and Economic Development will estimate impacts on unemployment insurance and benefit insurance programs; the Department of Revenue will assess impacts on income tax collection and government programs; and the Department of Labor and Industry will evaluate effects on workers' compensation funds and insurance rates. The bill also appropriates funds to these departments for fiscal years 2026 and 2027 to support misclassification fraud analysis, with specific instructions that the money must be used to estimate fraud rates and analyze potential program impacts. Worker misclassification typically occurs when employers incorrectly classify employees as independent contractors, which can deprive workers of benefits and protections and reduce government tax and insurance revenues.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2146&ssn=0&y=2025