[{"_1":2,"_124":-5,"_125":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6033538,"mediaKeyId","5364831-7ef752eeddd6a3058780de3aff20a31e","parentId",5364831,"title","Department of Labor and Industry seeks fee alignment, misclassification enforcement hires and teacher apprenticeship funding","audioSeconds",182,"startMs",2673000,"endMs",2855000,"viewUrl","/Search/View?dp=1&key=5364831-7ef752eeddd6a3058780de3aff20a31e&start=2673&end=2855","thumbnailUrl","https://assets.pipeline.soar.com/5364831-7ef752eeddd6a3058780de3aff20a31e/thumbnail_2673000.jpg","articleUrl","/articles/6033538/Minnesota/Department-of-Labor-and-Industry-seeks-fee-alignment-misclassification-enforcement-hires-and-teacher-apprenticeship-funding","mediaUrl","https://secure.pipeline.soar.com/6033538-d68c160596524c6812cdf24bc9598778/orig.mp4?Expires=1770850261&Signature=oJmULRnZkM9YuuU3UEZ9OCibMlVfUo5rJ8seta790KJtNFlxEeJuicyw7VGq10E29sfvxwWNBPm4CdUS4oWb8rPoRTiE3nFn~~tjb3WxoLEXHXJ86F6M9FYQTn2s4ppR4re3eKzLU3qxeVflemdZoy7~yPlBvG9TT6ObKQODcSbE-3hzKzzKldO0ahebmtJgltJCxZfxoAfmFSItinbaFUFnfwKP-uFBWwZiDYYV5J2OhVVYovkooRYeHva56MROmRM7MiFt-OhH7egbIHCucUVs1Vd6YJN3414Qdxv1LeaA8TpOW0rSaNVNhqwAPUh5rZ8BWX59BMSpNq5fKCSOxg__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota House Workforce, Labor, and Economic Development Finance and Policy Committee","date","2025-03-26T00:00:00Z","article","Commissioner Nicole Blissenbach presented the governor’s proposed budget for the Department of Labor and Industry (DLI) and explained several items that the department has requested.

Construction codes and licensing fee alignment: DLI proposed raising several permit, inspection and plan‑review fees to better match the cost of providing services. The department noted many fees have not been increased since 2007 and that the construction codes and licensing division is funded almost entirely by these fees. Industry groups including NECA, IBEW State Council, MMCA and the Minnesota Pipe Trades Association submitted letters of support for the fee alignment.

Misclassification enforcement: The budget request includes funding for an additional 2.5 full‑time equivalent positions in DLI’s labor standards division explicitly for misclassification enforcement. The commissioner noted that a $70,000 appropriation last year did not support a full‑time position and that the agency is seeing rising misclassification complaints across multiple sectors (construction, healthcare, transportation, restaurants), creating a need for more enforcement staff.

Statewide registered teacher apprenticeship: DLI asked for Workforce Development Fund support to launch a registered apprenticeship program for teachers, with $5 million in FY26 and $2 million in FY27. The department emphasized apprenticeship’s track record and said program funds would be used for administration, curriculum development, recruitment and subawards to participating school districts.

Rest and meal break clarification and penalties: The governor’s revised budget includes statutory language to clarify rest and meal break timing (for example, 15‑minute breaks per four consecutive hours and 30‑minute meal breaks per six hours). The proposal includes penalty revisions tied to enforcement. Chair Baker asked about phrasing in the break language (the phrase “or to otherwise be relieved from work duties”); Commissioner Blissenbach said the language was intended to clarify permitted uses of break time, including restroom use.

Grants to certified worker organizations: The revised budget includes $1 million to provide grants to certified worker organizations to support training required under nursing home workforce standards.

Public testimony: Education Minnesota’s Caitlin Snyder expressed support for the registered teacher apprenticeship proposal as a recruitment and retention tool. Mark Bruner of the Manufactured and Modular Home Association said the department and association are working to resolve concerns about proposed manufactured‑home inspection fees and a used‑home decal requirement; he supported other fee increases to address a division operating deficit. Ryan Saint Cartier of Minnesota NECA/MMCA supported fee alignment and adding Class IV circuit technology to the Power Limited license.

Committee action: Representative Berg moved HF 24‑41 before the committee; the chair laid the bill over for further consideration.

Why it matters: Fee alignment would change how DLI funds construction code services and could reduce plan‑review and inspection backlogs; additional enforcement staff and statutory clarifications would expand the agency’s capacity to investigate misclassification claims and potentially increase penalty revenue; the teacher apprenticeship proposal would create a new pathway for educator preparation.

What’s next: HF 24‑41 was laid over; the committee requested follow‑up on fee details, manufactured home provisions, and the apprenticeship design.

","mediaType","Video","parentTitle","Minnesota House Workforce, Labor, and Economic Development Finance and Policy Committee March 26, 2025","oneSentenceSummary","The Department of Labor and Industry requested fee increases and program investments to fund construction code services, strengthen misclassification enforcement and start a registered teacher apprenticeship program.","taxTitle","Workforce, Labor, and Economic Development Finance and Policy Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Minnesota","taxId",80487,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6033547,"Committee hears evidence of widespread worker misclassification; moves two bills forward for further review",349,171000,520000,"/Search/View?dp=1&key=5364831-7ef752eeddd6a3058780de3aff20a31e&start=171&end=520","https://assets.pipeline.soar.com/5364831-7ef752eeddd6a3058780de3aff20a31e/thumbnail_171000.jpg","/articles/6033547/Minnesota/Committee-hears-evidence-of-widespread-worker-misclassification-moves-two-bills-forward-for-further-review","https://secure.pipeline.soar.com/6033547-996f3e4a24736b55b1f3f306a2b55d9f/orig.mp4?Expires=1770850261&Signature=Ezkk~MnOzzHqafSFGYUFwxrWAGkgb7Kz8FVEw5C1zNXrte4EDvYTMm-6jqtcTLVECSqGqWYgAYuh9n2BeZSD870Mhgy6YTO21k2rN3DaL3GhGr5DAz~Tnbjns84szYiuzoOOUi~Q3f2KdyHEtJq8ol-pQsAUJO5r~gSNajv9TKb2~IZfVOKI6PEWMFc20KKxt2zUJvUiuoEeIwjj5fGuwkRgzmt7fGH~HlH8sNrzPmKjsiTMn8Pzz4iKsk3Yi5qfgEt0NZrc1gNN0qkpOhVNRouvbeokItKSxy7604nNeXF4cMzX8hn8hgTDfSHvmj~jq3lIsIdRpFoqhxiDAMFS0g__&Key-Pair-Id=KUT5TJCACFTXG","Representative Kelly Greiman presented two bills that emerged from the Attorney General’s misclassification task force: House File 21‑46, which would require ongoing state measurement of worker misclassification and its fiscal impact, and House File 21‑45, which would adjust penalties tied to misclassification enforcement.

Greiman said the task force spent more than a year collecting testimony from workers, businesses and enforcement agencies and concluded the problem is large and hard to measure. She asked the committee to consider both bills as a package and moved the D.E.1 amendment to HF 21‑46; the committee approved the amendment by voice vote and laid HF 21‑46 (as amended) and HF 21‑45 over for possible further action.

Jake Schweitzer, executive director of North Star Policy Action, testified about the group’s September report and emphasized three points: misclassification is costly to workers, costly to state programs, and can be estimated more accurately with access to state data. He said the organization’s conservative 2019 estimate is that roughly 316,000 private‑sector workers (about 9.4 percent of those workers) experienced misclassification and that affected workers lost between $2.9 billion and $6.2 billion in compensation. Schweitzer testified the state government lost an estimated $506 million to $1.3 billion in 2019 in revenue tied to misclassification (unemployment insurance, payroll taxes and other collections), and argued the state should fund an annual analysis to measure the problem and track enforcement results.

Business and worker witnesses described effects in particular industries. Jesse Madison, founder and CEO of Purple Tally Productions, said misclassification undercuts law‑abiding employers in live events and entertainment and can reduce competitive bids by 30–40 percent. “When they do that, they can undercut us by 30 to 40%,” Madison said. Alana Olsen, a stagehand and IATSE Local 13 member, described a 2012 injury she suffered while working for an organization that claimed it had no employees; she said that experience informed her work advocating for proper classification and worker protections. Tony McGarvey, a union organizer and former journeyman painter, described episodes in construction where workers disappeared from payrolls and ended up working for far lower pay under labor brokers, which he said is tied to employer avoidance of workers’ compensation and payroll taxes.

Several committee members pressed for clarity about scope and unintended consequences. Representative Schultz and others warned about broader impacts on genuine independent contractors and small businesses; Greiman and witnesses stressed the bills are intended to target illegal misclassification (employers treating employees as independent contractors) and to preserve lawful freelancing. Chair Pinto and other members emphasized the need for better interagency sharing of data among DLI (Department of Labor and Industry), DEED (Department of Employment and Economic Development), and Department of Revenue before expanding penalties.

The chair laid HF 21‑46 (reporting) over as amended and also laid HF 21‑45 (penalties/cleanup) over for additional committee consideration and possible bipartisan work.

Votes and formal motions recorded in committee were taken by voice. The DE1 amendment to HF 21‑46 was moved by Representative Greiman and approved by voice vote; the committee later laid both HF 21‑46 (as amended) and HF 21‑45 over for further action.

Why it matters: Committee members said the bills address a problem that affects workers’ wages, the solvency of public benefit funds, and competitive fairness for employers. Proponents urged investment in statewide measurement to justify enforcement funding; opponents cautioned against overbroad penalties that could ensnare legitimate independent contractors.

What’s next: The committee left both bills laid over to allow time for further discussion, interagency data review, and potential bipartisan changes before any final votes.

","Representative Kelly Greiman presented legislative proposals to measure and penalize worker misclassification after testimony from an attorney general task force and outside researchers.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6033543,"DEED presents governor's budget with new workforce investments and reductions; committee adopts department amendment and lays bill over",766,2844000,3610000,"/Search/View?dp=1&key=5364831-7ef752eeddd6a3058780de3aff20a31e&start=2844&end=3610","https://assets.pipeline.soar.com/5364831-7ef752eeddd6a3058780de3aff20a31e/thumbnail_2844000.jpg","/articles/6033543/Minnesota/DEED-presents-governors-budget-with-new-workforce-investments-and-reductions-committee-adopts-department-amendment-and-lays-bill-over","https://secure.pipeline.soar.com/6033543-95a50703e61833d16408367c670ef94b/orig.mp4?Expires=1770850261&Signature=NYb0tKGJU~qd6d9W2dtwsbhFfVfV9jwKtBbUOSdAVJ2HAtHFnEl7gJYXzv6qqe333Gb9ttEezN87NmgIWhXhbiGaTGxfC3dJULlPP1FcG2CBbCW6MqTt7NG8yJzBeJ5Jb-11L1zlI~FSrlL4a3HeV0WQUEgECGyVnRQ5hbnDg3~qdwk881kl19NV-9wPz-Rs-ncul1D7NJoiFesGMuHCA6m39zIRSns94r0tnFVJwTcD051iQigYeako1uA4Oqihou24Jzu8j6-qJUpgZwd2xddiLX0w8mhTEdY71SrW4xtXpkvrBTG5Kz1UkAmAzWVC6R3uVbZQI1QpymJNMkUpEw__&Key-Pair-Id=KUT5TJCACFTXG","Commissioner Matt Verlick presented the governor’s budget recommendations for the Department of Employment and Economic Development (DEED), highlighting a mix of new investments and program reductions.

Key proposed investments included a Service to Success initiative ($3 million per year in the first biennium, $500,000 thereafter) aimed at promoting non‑military public service opportunities and better connecting those programs to employer needs; an $8 million increase for the Drive for 5 workforce initiative to expand sector‑focused training grants and employer engagement; and a $5 million annual increase for Vocational Rehabilitation Services (VRS) to address growing costs and demand for employment services for Minnesotans with disabilities.

Verlick also described general fund reductions concentrated in economic development programs: a proposed $3 million reduction from the Job Creation Fund; cuts to the host communities program; reductions to the Small Business Assistance Partnership and the Emerging Entrepreneur Loan Program; and recommended decreases to redevelopment and contamination cleanup funding. The governor’s package would increase Workforce Development Fund spending overall by directing funds to Drive for 5 and related initiatives.

Representative Berg moved the 8‑25‑0030 amendment to HF 24‑40 to reflect the department’s supplemental budget proposal; the committee approved the amendment by voice vote and the chair laid the bill over for further consideration.

Public testimony focused on specific program impacts. Laura Bennett McGinty, director of Explore Minnesota, said the agency’s base budget plus a modest operating adjustment would allow steady tourism marketing work. Representatives of mental health advocacy groups pressed the committee to restore proposed cuts to Individual Placement and Support (IPS), an employment program for people with serious mental illness. Sarah Nispel of NAMI Minnesota said proposed cuts “would cut the only real employment program for people with serious mental illnesses in the state by more than half.” Peggy Darmody, who represents a coalition of IPS providers, told the committee the proposed reductions would reduce statewide IPS capacity by an estimated 70 percent and put many providers at risk.

Members asked for follow‑up information on VRS funding, the basis for DEED’s reductions and whether the administration has prioritized staffing cuts or program reductions. Verlick said the administration calibrated reductions to preserve program value where possible and noted VRS faces demand and federal funding uncertainty.

Why it matters: The governor’s budget would redirect workforce funding to targeted initiatives while trimming several economic development programs. Advocates warned that the cuts would reduce services for people with disabilities seeking employment and could shrink local provider capacity.

What’s next: HF 24‑40 (as amended) was laid over for additional committee consideration and follow‑up on program details and provider impacts.

","Department of Employment and Economic Development Commissioner Matt Verlick outlined the governor's budget recommendation, proposing targeted workforce investments and reductions across economic development programs. The committee adopted the department's amendment to reflect a supplemental proposal and laid the bill over for further review.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6033531,"Entrepreneur Fund seeks $1 million revolving loan capital to finance Main Street and startup projects",46,6424000,6470000,"/Search/View?dp=1&key=5364831-7ef752eeddd6a3058780de3aff20a31e&start=6424&end=6470","https://assets.pipeline.soar.com/5364831-7ef752eeddd6a3058780de3aff20a31e/thumbnail_6424000.jpg","/articles/6033531/Minnesota/Entrepreneur-Fund-seeks-1-million-revolving-loan-capital-to-finance-Main-Street-and-startup-projects","https://secure.pipeline.soar.com/6033531-645421332a8f1d25925224970fb82bcd/orig.mp4?Expires=1770850261&Signature=OhMh-2rMe8qRvdeTHA5iuVWlmjDiA2aIpyJFnwO7bXnO6eO6LqM11gdBV2Zoo5NKZZz7NgtQU9f8tRaPJywunnbdWDh-zZaadRhPt2E6PItBM0F8utCaL7o-yOIYfy4DaCMDr4LrN5IQe1EAvmpc6pouBrO~WN8kWuTRsl~W1nwmXsQiIMWMZ8P6MdZTsec9hqaf5CYnd4K9WLrCyXS48rLzb~LQKMhjTUjPEIsyjSiXiIC2FYCFzOCGIGyi~KGGPIYiMIrFFmnWjWIEN-mXNONe0SHcr52JUySTKBo-F9P0me9BCsbUT1vLo47pHCMbBtA4Uiutn3rZP6WfeUAUsQ__&Key-Pair-Id=KUT5TJCACFTXG","Representative Russell Schultz moved House File 15‑06 to be before the committee; the chair accepted the bill for consideration and laid it over for further review.

Sean Wellness, CEO of the Entrepreneur Fund, testified that the organization provides revolving loans and technical assistance to startup and Main Street businesses in 16 counties and five tribal nations in Central and Northeast Minnesota. Wellness said $1 million in state capital would be leveraged multiple times (historically at least 3:1) to provide small loans that catalyze private investment and help projects proceed in places where commercial lenders do not readily lend. He described the fund’s role as a “catalyst” that often enables private capital to follow public seed loans.

Why it matters: The request is framed as an economic development tool that increases access to capital in underserved markets; backers said the fund has a track record of turning small public investments into larger private projects and local job creation.

What’s next: HF 15‑06 was laid over for follow‑up and technical review.

","The committee heard a short presentation from the Entrepreneur Fund, which asked for a $1 million revolving loan capital appropriation to leverage private matching funds and expand lending capacity in Central and Northeast Minnesota; the bill was moved before the committee and laid over.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":117,"_47":118,"_49":119,"_51":120,"_53":121,"_55":56,"_57":58,"_59":122,"_61":62,"_63":64,"_65":123,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6033534,"Committee extends availability of Ramsey County training funds to allow summer youth cohort",162,6088000,6250000,"/Search/View?dp=1&key=5364831-7ef752eeddd6a3058780de3aff20a31e&start=6088&end=6250","https://assets.pipeline.soar.com/5364831-7ef752eeddd6a3058780de3aff20a31e/thumbnail_6088000.jpg","/articles/6033534/Minnesota/Committee-extends-availability-of-Ramsey-County-training-funds-to-allow-summer-youth-cohort","https://secure.pipeline.soar.com/6033534-632fb5ea9063ec8a6a20a945ff39c149/orig.mp4?Expires=1770850261&Signature=fj690tP-He4DHcu16-6lF73MTseWJdBgrhVFFgJIFDddicKx59DJpAvBYuQkur~H4Oqgt5WlMdeFe3OYddHkz64tzy8iTmoznEgh3YbzG7JBz5rGSLCsz8VebdgR719QvzgTerByaredH3Rt3jmicNkr~onNF1FkDepijnzNb1OqdUqltMYEGiGDq9Pxsw5rPh5QPJO6JlEeLmcPSJBbuDXvjI9TApA4L6~SSa4FtroPqb2-R0PnxqjfyTenEr2ta7-J-oy5~Qd4braEgkBtysrPhOwa33a7feePTVv26h0aRp7XHSlKo~k-6lF6YdVkIOxgmatjzcqpGcN-DbAHKw__&Key-Pair-Id=KUT5TJCACFTXG","Representative Erin Lee moved and the committee adopted the D.E.1 amendment to House File 25‑65 to extend the availability of funds that were appropriated in 2023 and allow Ramsey County to operate a summer cohort for 18‑ to 24‑year‑old participants.

Geva, a recent graduate of the Ramsey County Tax Credit Training Program, testified about personal experience in the Ramsey County IT training and internship path. She said the program provided tuition‑free instruction, an internship placement and a stipend that helped cover transportation and daily necessities. Geva told members the program led directly to a full‑time technician position.

Representative Berg moved the bill to general register; the committee approved the motion by voice vote and recommended placement on the general register.

Why it matters: Extending the appropriation preserves a planned summer training and internship cohort that county officials said takes months to recruit and prepare. Participants and local employers described the program as a direct pipeline to entry‑level technical jobs.

What’s next: HF 25‑65 as amended was recommended for placement on the general register for floor consideration.

","The committee approved a D.E.1 amendment to extend previously appropriated funds so Ramsey County can run a summer workforce and training cohort for 18–24 year olds. Testimony from a program graduate described the program's role in job skills and placement.","actionData","errors"]

Article not found

Department of Labor and Industry seeks fee alignment, misclassification enforcement hires and teacher apprenticeship funding

Committee hears evidence of widespread worker misclassification; moves two bills forward for further review

DEED presents governor's budget with new workforce investments and reductions; committee adopts department amendment and lays bill over

Entrepreneur Fund seeks $1 million revolving loan capital to finance Main Street and startup projects

Committee extends availability of Ramsey County training funds to allow summer youth cohort