HF4708

Purpose

• Clarify how employers’ reports about possible fraud related to paid leave benefits are treated under Minnesota law. The bill aims to protect legitimate, good-faith employer reports from being counted as retaliation, while making sure that false or knowingly dishonest reports can be treated as retaliation.

Main provisions

• Adds a new subdivision (Subd. 9) to Minnesota Statutes 2024 section 268B.09, titled “Reporting fraud by employer.”
• Key rule: If an employer makes a good-faith report to the commissioner or to law enforcement claiming that a covered individual committed fraud in connection with applying for or using paid leave benefits, that report must not be considered retaliation or interference under this statute.
• Key rule: If an employer intentionally makes an inaccurate or false report of fraud, that report is considered retaliation or interference under this statute.

Significant changes to existing law

• Establishes a clear distinction between good-faith fraud reports (protected from being treated as retaliation) and knowingly false reports (treated as retaliation).
• Applies specifically to fraud connected to the application for or use of paid leave benefits.
• Adding this safeguard to the existing retaliation framework under 268B.09 clarifies employer rights and responsibilities when reporting suspected fraud.

What this means in practice

• Employers may report suspected fraud about paid leave benefits without fearing that a good-faith report will be treated as retaliation.
• Employers that file false or intentionally misleading fraud reports could face consequences under the retaliation/interference provisions.

Potential impacts

• For employers: Encourages reporting of suspected fraud when done in good faith.
• For employees/covered individuals: Provides stronger protection against claims of retaliation when a report is made in good faith; creates potential penalties for knowingly false reports.

Relevant Terms

• paid leave benefits
• covered individual
• fraud
• good faith report
• intentionally inaccurate report
• retaliation or interference
• employer
• commissioner
• law enforcement
• Minnesota Statutes 2024 section 268B.09
• Subd.9 Reporting fraud by employer