Commissioner disallowed to consider an employer reporting of fraud as retaliation.

2025-2026 Regular Session Introduced by Patty Mueller

Good-faith employer reports of paid-leave fraud are not retaliation; knowingly false reports can be retaliation, clarifying how such reporting is treated.

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy

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Purpose and intent

HF 4708 amends Minnesota Statutes to clarify how the state’s Labor/Workforce framework treats reports of fraud by employers related to paid leave. Specifically, it provides that an employer’s good faith report to the commissioner or law enforcement that a covered individual has committed fraud in connection with paid leave benefits should not be considered retaliation or interference. Conversely, if an employer knowingly or intentionally makes an inaccurate report of fraud, that action could be treated as retaliation or interference.

Key provisions

New subdivision added to Minnesota Statutes 2024, § 268B.09 (Reporting fraud by employer).

Good-faith reporting: The commissioner must not regard an employer’s good faith report about fraud by a covered individual (in the context of applying for or using paid leave benefits) as retaliation or interference under the relevant retaliation statute.
Inaccurate reporting: If an employer intentionally makes an inaccurate report of fraud, that conduct can be considered retaliation or interference.
Effective date: The provision becomes effective the day after final enactment.

Scope and topics addressed:

Applies to reports made to the commissioner or law enforcement concerning fraud related to paid leave benefits.
Targets the characterization of reporting behavior within the retaliation/ interference framework.

Who is affected

Employers: Employers who report suspected fraud related to paid leave benefits to the Minnesota Commissioner of Employment and Economic Development or to law enforcement.

Encourages good-faith reporting without it being treated as retaliation.
Risks potential retaliation/ interference findings if reports are knowingly false or purposely misleading.

Covered individuals: Individuals whose use or application of paid leave benefits may be implicated in fraud reports.

State authorities: The commissioner (and law enforcement) are the recipients and evaluators of such reports under the revised standard.

Procedural and timeline aspects

Effective date: The bill states the new provision takes effect the day after final enactment.

Legislative status: Introduced and read for the first time on March 25, 2026; referred to relevant committees (Workforce, Labor, and Economic Development Finance and Policy) for consideration.

No other changes: The text provided indicates a single-subdivision addition to § 268B.09; no other amendments or fiscal provisions are shown.

Takeaway

HF 4708 provides clarity on how reporting fraud by an employer related to paid leave should be treated under Minnesota law. It protects employers who report in good faith from being classified as engaging in retaliation or interference, while still allowing penalties for intentionally false or misleading fraud reports. The change is narrow in scope and primarily affects the interpretation of retaliation in the context of paid leave fraud reporting.

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