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S.F. No. 658 - Misrepresentation of Employment Status-Enforcement
 
Author: Senator Kari Dziedzic
 
Prepared By:
 
Date: March 1, 2013



 

BACKGROUND

Senate File No. 658 grants the Commissioner of Labor and Industry authority to issue compliance orders related to Minnesota Statutes, section 181.722.  Section 181,722 prohibits an employer from misrepresenting the nature of its employment relationship with an employee to any federal, state, or local government unit, to other employers; or to its employees.  Misrepresentation usually involves characterizing a person as an independent contractor rather than an employee.  Under section 181.722, courts are required to report violations of section 181.722 to the Commissioner of Labor and  Industry but the commissioner is given no enforcement power.

Section 1 amends Minnesota Statutes, section 177.27, subdivision 4 to authorize the Commissioner of Labor and Industry to issue compliance orders for violations of section 181.722 (discussed above).  If a compliance order is violated, the commissioner may bring an action in district court to enforce the order.  The commissioner may also issue a cease and desist order.  Civil penalties may also be available against  an employer violating a statute for which the commissioner may issue a compliance order.

JCF/syl

 
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