SF4130

Purpose

To provide a mechanism for small employers to receive refunds of certain workforce development assessments they paid, with the goal of encouraging investment in training for Minnesota employees.

Main Provisions

• Adds a new subdivision to Minnesota Statutes 2024 section 116L.20.
• Eligible employers: those with 100 or fewer employees.
• Refund option: eligible employers may annually request from the commissioner a refund of the special assessment amounts the employer paid into the workforce development fund.
• Use of refunds: refunds must be used for training of employees, specifically to upskill current entry-level employees or to provide training that leads to a higher salary or greater opportunities for career advancement with the employer.
• Geographic scope of training: refunds may only be used to train Minnesota employees.
• Reporting requirement: by January 15, 2027, and each January 15 thereafter, the commissioner must provide a report to the chairs and ranking minority members of the relevant Senate and House committees. The report must include:
  • the current balance in the workforce development fund; and
  • for the previous calendar year, the total amount of special assessments collected and the total amount refunded to employers under this subdivision.

How it Works

• An eligible small employer applies for a refund of the special assessments paid into the workforce development fund.
• If approved, the refunded funds must be used exclusively for employee training as described above.
• The program requires annual financial reporting to legislative leadership, tracking both fund balance and the flow of refunds.

Significance / Changes to Law

• Creates a new refund option for small employers (≤100 employees) tied to the workforce development fund.
• Directly ties refunds to concrete training outcomes (upskilling, salary increases, or career advancement) for Minnesota workers.
• Establishes an ongoing public reporting requirement to monitor fund status and the impact of refunds.

Relevant Terms - workforce development fund - special assessment - employer refunds - employee training - upskill - entry-level employees - salary increase - career advancement - Minnesota employees - commissioner - chairs and ranking minority members - committees with jurisdiction over workforce development