SF4607 (Legislative Session 94 (2025-2026))
Provision that employer reporting of fraud is not retaliation
AI Generated Summary
Purpose
This bill adds a new rule to protect employers who report suspected fraud by a person using paid leave benefits. It says that a good faith report by an employer about fraud is not considered retaliation or interference. The intent is to encourage honest reporting of suspected fraud without fear of penalties for doing so, while still punishing purposely false reports.
Main provisions
- Creates Subdivision 9 under Minnesota Statutes 268B.09 (Reporting fraud by employer).
- If an employer makes a good faith report to the commissioner or to law enforcement that a covered individual has committed fraud related to applying for or using paid leave benefits, that report cannot be treated as retaliation or interference under this law.
- If an employer intentionally and inaccurately reports fraud, that false reporting is considered retaliation or interference.
- The terms involved include the commissioner, good faith report, covered individual, fraud, paid leave benefits, and retaliation or interference.
Significant changes to existing law
- Adds a new subdivision to clarify that good faith fraud reporting by an employer is protected and not retaliatory.
- Establishes a clear standard that only intentionally false fraud reports can be penalized as retaliation or interference.
- This change shifts how employer fraud reports are treated under the existing retaliation framework and provides stronger protection for employers making honest reports.
How this affects people and entities
- Employers: Encouraged to report suspected fraud related to paid leave benefits without fear of retaliation charges, as long as the report is in good faith.
- Covered individuals (those applying for or using paid leave benefits): Their fraud-related conduct can be investigated without automatically triggering retaliation claims against the employer, provided the report is factual and made in good faith.
- State agencies (the commissioner) and law enforcement: Remain the recipients of fraud reports and will assess them per the new good faith standard.
Terminology used in the bill
- good faith report
- retaliation or interference
- fraud
- covered individual
- paid leave benefits
- commissioner
- intentionally inaccurate report
- law enforcement
- Minnesota Statutes 2024 section 268B.09
Relevant Terms - good faith report - retaliation - interference - fraud - paid leave benefits - covered individual - commissioner - law enforcement - intentionally inaccurate report - Minnesota Statutes 268B.09
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 18, 2026 | Senate | Action | Introduction and first reading | ||
| March 18, 2026 | Senate | Action | Referred to | Jobs and Economic Development |
Citations
[
{
"analysis": {
"added": [
"Adds Subd.9 to Minnesota Statutes 2024 section 268B.09, titled 'Reporting fraud by employer'.",
"Clarifies that a good faith employer report of fraud is not considered retaliation or interference.",
"Provides that an employer's intentionally inaccurate report of fraud must be considered retaliation or interference."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 268B.09 by adding Subd.9, which provides that an employer's good faith report to the commissioner or law enforcement that a covered individual has committed fraud related to paid leave benefits is not an action of retaliation or interference under this section; an intentionally inaccurate report constitutes retaliation or interference.",
"modified": []
},
"citation": "268B.09",
"subdivision": "Subd.9"
}
]Progress through the legislative process
In Committee